Correlation Between Luyin Investment and Zotye Automobile
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By analyzing existing cross correlation between Luyin Investment Group and Zotye Automobile Co, you can compare the effects of market volatilities on Luyin Investment and Zotye Automobile 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 Zotye Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luyin Investment and Zotye Automobile.
Diversification Opportunities for Luyin Investment and Zotye Automobile
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Luyin and Zotye is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Luyin Investment Group and Zotye Automobile Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zotye Automobile 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 Zotye Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zotye Automobile has no effect on the direction of Luyin Investment i.e., Luyin Investment and Zotye Automobile go up and down completely randomly.
Pair Corralation between Luyin Investment and Zotye Automobile
Assuming the 90 days trading horizon Luyin Investment Group is expected to generate 0.46 times more return on investment than Zotye Automobile. However, Luyin Investment Group is 2.17 times less risky than Zotye Automobile. It trades about 0.1 of its potential returns per unit of risk. Zotye Automobile Co is currently generating about 0.03 per unit of risk. If you would invest 467.00 in Luyin Investment Group on November 3, 2024 and sell it today you would earn a total of 119.00 from holding Luyin Investment Group or generate 25.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Luyin Investment Group vs. Zotye Automobile Co
Performance |
| Timeline |
| Luyin Investment |
| Zotye Automobile |
Luyin Investment and Zotye Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luyin Investment and Zotye Automobile
The main advantage of trading using opposite Luyin Investment and Zotye Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luyin Investment position performs unexpectedly, Zotye Automobile 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 Zotye Automobile will offset losses from the drop in Zotye Automobile'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 |
| Zotye Automobile vs. China Asset Management | Zotye Automobile vs. Jiangsu Yanghe Brewery | Zotye Automobile vs. Linkage Software Co | Zotye Automobile vs. Gansu Huangtai Wine marketing |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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