Correlation Between Luyin Investment and Guangdong Jinma
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By analyzing existing cross correlation between Luyin Investment Group and Guangdong Jinma Entertainment, you can compare the effects of market volatilities on Luyin Investment and Guangdong Jinma 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 Guangdong Jinma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luyin Investment and Guangdong Jinma.
Diversification Opportunities for Luyin Investment and Guangdong Jinma
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Luyin and Guangdong is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Luyin Investment Group and Guangdong Jinma Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Jinma Ente 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 Guangdong Jinma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Jinma Ente has no effect on the direction of Luyin Investment i.e., Luyin Investment and Guangdong Jinma go up and down completely randomly.
Pair Corralation between Luyin Investment and Guangdong Jinma
Assuming the 90 days trading horizon Luyin Investment Group is expected to under-perform the Guangdong Jinma. But the stock apears to be less risky and, when comparing its historical volatility, Luyin Investment Group is 1.64 times less risky than Guangdong Jinma. The stock trades about -0.01 of its potential returns per unit of risk. The Guangdong Jinma Entertainment is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,571 in Guangdong Jinma Entertainment on October 16, 2024 and sell it today you would lose (48.00) from holding Guangdong Jinma Entertainment or give up 3.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Luyin Investment Group vs. Guangdong Jinma Entertainment
Performance |
| Timeline |
| Luyin Investment |
| Guangdong Jinma Ente |
Luyin Investment and Guangdong Jinma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luyin Investment and Guangdong Jinma
The main advantage of trading using opposite Luyin Investment and Guangdong Jinma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luyin Investment position performs unexpectedly, Guangdong Jinma 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 Guangdong Jinma will offset losses from the drop in Guangdong Jinma's long position.| Luyin Investment vs. Jonjee Hi tech Industrial | Luyin Investment vs. Qiming Information Technology | Luyin Investment vs. Bosera CMSK Industrial | Luyin Investment vs. Emdoor Information Co |
| Guangdong Jinma vs. Threes Company Media | Guangdong Jinma vs. JiShi Media Co | Guangdong Jinma vs. Beijing Enlight Media | Guangdong Jinma vs. CICC Fund Management |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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