Correlation Between Luyin Investment and Jiangxi Ganfeng
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By analyzing existing cross correlation between Luyin Investment Group and Jiangxi Ganfeng Lithium, you can compare the effects of market volatilities on Luyin Investment and Jiangxi Ganfeng 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 Jiangxi Ganfeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luyin Investment and Jiangxi Ganfeng.
Diversification Opportunities for Luyin Investment and Jiangxi Ganfeng
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Luyin and Jiangxi is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Luyin Investment Group and Jiangxi Ganfeng Lithium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Ganfeng Lithium 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 Jiangxi Ganfeng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Ganfeng Lithium has no effect on the direction of Luyin Investment i.e., Luyin Investment and Jiangxi Ganfeng go up and down completely randomly.
Pair Corralation between Luyin Investment and Jiangxi Ganfeng
Assuming the 90 days trading horizon Luyin Investment Group is expected to generate 0.71 times more return on investment than Jiangxi Ganfeng. However, Luyin Investment Group is 1.42 times less risky than Jiangxi Ganfeng. It trades about -0.01 of its potential returns per unit of risk. Jiangxi Ganfeng Lithium is currently generating about -0.05 per unit of risk. If you would invest 654.00 in Luyin Investment Group on October 16, 2024 and sell it today you would lose (101.00) from holding Luyin Investment Group or give up 15.44% 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. Jiangxi Ganfeng Lithium
Performance |
| Timeline |
| Luyin Investment |
| Jiangxi Ganfeng Lithium |
Luyin Investment and Jiangxi Ganfeng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luyin Investment and Jiangxi Ganfeng
The main advantage of trading using opposite Luyin Investment and Jiangxi Ganfeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luyin Investment position performs unexpectedly, Jiangxi Ganfeng 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 Jiangxi Ganfeng will offset losses from the drop in Jiangxi Ganfeng's long position.| Luyin Investment vs. Masterwork Machinery | Luyin Investment vs. Shaanxi Construction Machinery | Luyin Investment vs. Gifore Agricultural Machinery | Luyin Investment vs. Shaanxi Meineng Clean |
| Jiangxi Ganfeng vs. JiShi Media Co | Jiangxi Ganfeng vs. Beijing Enlight Media | Jiangxi Ganfeng vs. Luyin Investment Group | Jiangxi Ganfeng vs. Changjiang Publishing Media |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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