Correlation Between Luyin Investment and North Chemical
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By analyzing existing cross correlation between Luyin Investment Group and North Chemical Industries, you can compare the effects of market volatilities on Luyin Investment and North Chemical 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 North Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luyin Investment and North Chemical.
Diversification Opportunities for Luyin Investment and North Chemical
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Luyin and North is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Luyin Investment Group and North Chemical Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on North Chemical Industries 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 North Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of North Chemical Industries has no effect on the direction of Luyin Investment i.e., Luyin Investment and North Chemical go up and down completely randomly.
Pair Corralation between Luyin Investment and North Chemical
Assuming the 90 days trading horizon Luyin Investment is expected to generate 2.45 times less return on investment than North Chemical. But when comparing it to its historical volatility, Luyin Investment Group is 2.03 times less risky than North Chemical. It trades about 0.1 of its potential returns per unit of risk. North Chemical Industries is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,095 in North Chemical Industries on September 4, 2024 and sell it today you would earn a total of 90.00 from holding North Chemical Industries or generate 8.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Luyin Investment Group vs. North Chemical Industries
Performance |
| Timeline |
| Luyin Investment |
| North Chemical Industries |
Luyin Investment and North Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luyin Investment and North Chemical
The main advantage of trading using opposite Luyin Investment and North Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luyin Investment position performs unexpectedly, North Chemical 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 North Chemical will offset losses from the drop in North Chemical's long position.| Luyin Investment vs. Zijin Mining Group | Luyin Investment vs. Wanhua Chemical Group | Luyin Investment vs. Baoshan Iron Steel | Luyin Investment vs. Rongsheng Petrochemical Co |
| North Chemical vs. Tibet Huayu Mining | North Chemical vs. Uroica Mining Safety | North Chemical vs. China Sports Industry | North Chemical vs. Luyin Investment Group |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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