Correlation Between Luyin Investment and Dirui Industrial
Specify exactly 2 symbols:
By analyzing existing cross correlation between Luyin Investment Group and Dirui Industrial Co, you can compare the effects of market volatilities on Luyin Investment and Dirui Industrial 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 Dirui Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luyin Investment and Dirui Industrial.
Diversification Opportunities for Luyin Investment and Dirui Industrial
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Luyin and Dirui is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Luyin Investment Group and Dirui Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dirui Industrial 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 Dirui Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dirui Industrial has no effect on the direction of Luyin Investment i.e., Luyin Investment and Dirui Industrial go up and down completely randomly.
Pair Corralation between Luyin Investment and Dirui Industrial
Assuming the 90 days trading horizon Luyin Investment Group is expected to generate 0.75 times more return on investment than Dirui Industrial. However, Luyin Investment Group is 1.33 times less risky than Dirui Industrial. It trades about 0.07 of its potential returns per unit of risk. Dirui Industrial Co is currently generating about 0.0 per unit of risk. If you would invest 624.00 in Luyin Investment Group on September 12, 2024 and sell it today you would earn a total of 16.00 from holding Luyin Investment Group or generate 2.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Luyin Investment Group vs. Dirui Industrial Co
Performance |
| Timeline |
| Luyin Investment |
| Dirui Industrial |
Luyin Investment and Dirui Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luyin Investment and Dirui Industrial
The main advantage of trading using opposite Luyin Investment and Dirui Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luyin Investment position performs unexpectedly, Dirui Industrial 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 Dirui Industrial will offset losses from the drop in Dirui Industrial'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 |
| Dirui Industrial vs. Cultural Investment Holdings | Dirui Industrial vs. Gome Telecom Equipment | Dirui Industrial vs. Holitech Technology Co | Dirui Industrial vs. Zotye Automobile Co |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |