Correlation Between Luyin Investment and Success Electronics
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By analyzing existing cross correlation between Luyin Investment Group and Success Electronics, you can compare the effects of market volatilities on Luyin Investment and Success Electronics 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 Success Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luyin Investment and Success Electronics.
Diversification Opportunities for Luyin Investment and Success Electronics
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Luyin and Success is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Luyin Investment Group and Success Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Success Electronics 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 Success Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Success Electronics has no effect on the direction of Luyin Investment i.e., Luyin Investment and Success Electronics go up and down completely randomly.
Pair Corralation between Luyin Investment and Success Electronics
Assuming the 90 days trading horizon Luyin Investment Group is expected to generate 0.65 times more return on investment than Success Electronics. However, Luyin Investment Group is 1.55 times less risky than Success Electronics. It trades about -0.01 of its potential returns per unit of risk. Success Electronics is currently generating about -0.04 per unit of risk. If you would invest 654.00 in Luyin Investment Group on October 14, 2024 and sell it today you would lose (103.00) from holding Luyin Investment Group or give up 15.75% 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. Success Electronics
Performance |
| Timeline |
| Luyin Investment |
| Success Electronics |
Luyin Investment and Success Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luyin Investment and Success Electronics
The main advantage of trading using opposite Luyin Investment and Success Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luyin Investment position performs unexpectedly, Success Electronics 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 Success Electronics will offset losses from the drop in Success Electronics' long position.| Luyin Investment vs. Nanxing Furniture Machinery | Luyin Investment vs. Shaanxi Construction Machinery | Luyin Investment vs. Hainan Airlines Co | Luyin Investment vs. Zhejiang Construction Investment |
| Success Electronics vs. Harbin Hatou Investment | Success Electronics vs. Zhejiang JIULI Hi tech | Success Electronics vs. Zhejiang Construction Investment | Success Electronics 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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