Correlation Between Luyin Investment and Zhejiang Kingland
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By analyzing existing cross correlation between Luyin Investment Group and Zhejiang Kingland Pipeline, you can compare the effects of market volatilities on Luyin Investment and Zhejiang Kingland 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 Zhejiang Kingland. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luyin Investment and Zhejiang Kingland.
Diversification Opportunities for Luyin Investment and Zhejiang Kingland
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Luyin and Zhejiang is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Luyin Investment Group and Zhejiang Kingland Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Kingland 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 Zhejiang Kingland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Kingland has no effect on the direction of Luyin Investment i.e., Luyin Investment and Zhejiang Kingland go up and down completely randomly.
Pair Corralation between Luyin Investment and Zhejiang Kingland
Assuming the 90 days trading horizon Luyin Investment Group is expected to under-perform the Zhejiang Kingland. But the stock apears to be less risky and, when comparing its historical volatility, Luyin Investment Group is 1.05 times less risky than Zhejiang Kingland. The stock trades about 0.0 of its potential returns per unit of risk. The Zhejiang Kingland Pipeline is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 640.00 in Zhejiang Kingland Pipeline on August 31, 2024 and sell it today you would lose (1.00) from holding Zhejiang Kingland Pipeline or give up 0.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Luyin Investment Group vs. Zhejiang Kingland Pipeline
Performance |
| Timeline |
| Luyin Investment |
| Zhejiang Kingland |
Luyin Investment and Zhejiang Kingland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luyin Investment and Zhejiang Kingland
The main advantage of trading using opposite Luyin Investment and Zhejiang Kingland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luyin Investment position performs unexpectedly, Zhejiang Kingland 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 Zhejiang Kingland will offset losses from the drop in Zhejiang Kingland's long position.| Luyin Investment vs. Eastern Communications Co | Luyin Investment vs. Xinjiang Communications Construction | Luyin Investment vs. Railway Signal Communication | Luyin Investment vs. Shanghai Yanpu Metal |
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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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