Correlation Between Luyin Investment and Guocheng Mining
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By analyzing existing cross correlation between Luyin Investment Group and Guocheng Mining Co, you can compare the effects of market volatilities on Luyin Investment and Guocheng Mining and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Luyin Investment with a short position of Guocheng Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luyin Investment and Guocheng Mining.
Diversification Opportunities for Luyin Investment and Guocheng Mining
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Luyin and Guocheng is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Luyin Investment Group and Guocheng Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guocheng Mining and Luyin Investment is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Luyin Investment Group are associated (or correlated) with Guocheng Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guocheng Mining has no effect on the direction of Luyin Investment i.e., Luyin Investment and Guocheng Mining go up and down completely randomly.
Pair Corralation between Luyin Investment and Guocheng Mining
Assuming the 90 days trading horizon Luyin Investment Group is expected to generate 0.52 times more return on investment than Guocheng Mining. However, Luyin Investment Group is 1.92 times less risky than Guocheng Mining. It trades about -0.39 of its potential returns per unit of risk. Guocheng Mining Co is currently generating about -0.42 per unit of risk. If you would invest 648.00 in Luyin Investment Group on October 17, 2024 and sell it today you would lose (91.00) from holding Luyin Investment Group or give up 14.04% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Luyin Investment Group vs. Guocheng Mining Co
Performance |
Timeline |
Luyin Investment |
Guocheng Mining |
Luyin Investment and Guocheng Mining Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Luyin Investment and Guocheng Mining
The main advantage of trading using opposite Luyin Investment and Guocheng Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luyin Investment position performs unexpectedly, Guocheng Mining can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Guocheng Mining will offset losses from the drop in Guocheng Mining's long position.Luyin Investment vs. Zijin Mining Group | Luyin Investment vs. Wanhua Chemical Group | Luyin Investment vs. Baoshan Iron Steel | Luyin Investment vs. Shandong Gold Mining |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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