Correlation Between Luyin Investment and Guangzhou Seagull
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By analyzing existing cross correlation between Luyin Investment Group and Guangzhou Seagull Kitchen, you can compare the effects of market volatilities on Luyin Investment and Guangzhou Seagull 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 Guangzhou Seagull. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luyin Investment and Guangzhou Seagull.
Diversification Opportunities for Luyin Investment and Guangzhou Seagull
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Luyin and Guangzhou is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Luyin Investment Group and Guangzhou Seagull Kitchen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Seagull Kitchen 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 Guangzhou Seagull. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Seagull Kitchen has no effect on the direction of Luyin Investment i.e., Luyin Investment and Guangzhou Seagull go up and down completely randomly.
Pair Corralation between Luyin Investment and Guangzhou Seagull
Assuming the 90 days trading horizon Luyin Investment Group is expected to under-perform the Guangzhou Seagull. But the stock apears to be less risky and, when comparing its historical volatility, Luyin Investment Group is 1.17 times less risky than Guangzhou Seagull. The stock trades about -0.02 of its potential returns per unit of risk. The Guangzhou Seagull Kitchen is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 286.00 in Guangzhou Seagull Kitchen on November 3, 2024 and sell it today you would lose (1.00) from holding Guangzhou Seagull Kitchen or give up 0.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Luyin Investment Group vs. Guangzhou Seagull Kitchen
Performance |
| Timeline |
| Luyin Investment |
| Guangzhou Seagull Kitchen |
Luyin Investment and Guangzhou Seagull Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luyin Investment and Guangzhou Seagull
The main advantage of trading using opposite Luyin Investment and Guangzhou Seagull positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luyin Investment position performs unexpectedly, Guangzhou Seagull 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 Guangzhou Seagull will offset losses from the drop in Guangzhou Seagull's long position.| Luyin Investment vs. Yoantion Industrial IncLtd | Luyin Investment vs. Beijing Yanjing Brewery | Luyin Investment vs. Chison Medical Technologies | Luyin Investment vs. Hengli Industrial Development |
| Guangzhou Seagull vs. Dazhong Transportation Group | Guangzhou Seagull vs. Jiamei Food Packaging | Guangzhou Seagull vs. RoadMain T Co | Guangzhou Seagull vs. HaiXin Foods Co |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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