Correlation Between Luyin Investment and Tieling Newcity
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By analyzing existing cross correlation between Luyin Investment Group and Tieling Newcity Investment, you can compare the effects of market volatilities on Luyin Investment and Tieling Newcity 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 Tieling Newcity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luyin Investment and Tieling Newcity.
Diversification Opportunities for Luyin Investment and Tieling Newcity
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Luyin and Tieling is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Luyin Investment Group and Tieling Newcity Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tieling Newcity Inve 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 Tieling Newcity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tieling Newcity Inve has no effect on the direction of Luyin Investment i.e., Luyin Investment and Tieling Newcity go up and down completely randomly.
Pair Corralation between Luyin Investment and Tieling Newcity
Assuming the 90 days trading horizon Luyin Investment Group is expected to under-perform the Tieling Newcity. But the stock apears to be less risky and, when comparing its historical volatility, Luyin Investment Group is 1.64 times less risky than Tieling Newcity. The stock trades about -0.28 of its potential returns per unit of risk. The Tieling Newcity Investment is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 336.00 in Tieling Newcity Investment on October 20, 2024 and sell it today you would lose (16.00) from holding Tieling Newcity Investment or give up 4.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Luyin Investment Group vs. Tieling Newcity Investment
Performance |
| Timeline |
| Luyin Investment |
| Tieling Newcity Inve |
Luyin Investment and Tieling Newcity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luyin Investment and Tieling Newcity
The main advantage of trading using opposite Luyin Investment and Tieling Newcity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luyin Investment position performs unexpectedly, Tieling Newcity 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 Tieling Newcity will offset losses from the drop in Tieling Newcity's long position.| Luyin Investment vs. Allgens Medical Technology | Luyin Investment vs. Cowealth Medical China | Luyin Investment vs. Allmed Medical Products | Luyin Investment vs. Agricultural Bank of |
| Tieling Newcity vs. BYD Co Ltd | Tieling Newcity vs. China Mobile Limited | Tieling Newcity vs. Agricultural Bank of | Tieling Newcity vs. Industrial and Commercial |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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