Correlation Between Luyin Investment and Glodon Software
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By analyzing existing cross correlation between Luyin Investment Group and Glodon Software Co, you can compare the effects of market volatilities on Luyin Investment and Glodon Software 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 Glodon Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luyin Investment and Glodon Software.
Diversification Opportunities for Luyin Investment and Glodon Software
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Luyin and Glodon is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Luyin Investment Group and Glodon Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glodon Software 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 Glodon Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glodon Software has no effect on the direction of Luyin Investment i.e., Luyin Investment and Glodon Software go up and down completely randomly.
Pair Corralation between Luyin Investment and Glodon Software
Assuming the 90 days trading horizon Luyin Investment Group is expected to generate 0.53 times more return on investment than Glodon Software. However, Luyin Investment Group is 1.87 times less risky than Glodon Software. It trades about 0.07 of its potential returns per unit of risk. Glodon Software Co is currently generating about 0.01 per unit of risk. If you would invest 466.00 in Luyin Investment Group on October 13, 2024 and sell it today you would earn a total of 85.00 from holding Luyin Investment Group or generate 18.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Luyin Investment Group vs. Glodon Software Co
Performance |
| Timeline |
| Luyin Investment |
| Glodon Software |
Luyin Investment and Glodon Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luyin Investment and Glodon Software
The main advantage of trading using opposite Luyin Investment and Glodon Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luyin Investment position performs unexpectedly, Glodon Software 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 Glodon Software will offset losses from the drop in Glodon Software's long position.| Luyin Investment vs. Masterwork Machinery | Luyin Investment vs. Gifore Agricultural Machinery | Luyin Investment vs. Jointo Energy Investment | Luyin Investment vs. Sinomach General Machinery |
| Glodon Software vs. Guangdong Jingyi Metal | Glodon Software vs. Guocheng Mining Co | Glodon Software vs. Bus Online Co | Glodon Software vs. Western Metal Materials |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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