Correlation Between Luyin Investment and Kangping Technology
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By analyzing existing cross correlation between Luyin Investment Group and Kangping Technology Co, you can compare the effects of market volatilities on Luyin Investment and Kangping Technology 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 Kangping Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luyin Investment and Kangping Technology.
Diversification Opportunities for Luyin Investment and Kangping Technology
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Luyin and Kangping is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Luyin Investment Group and Kangping Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kangping Technology 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 Kangping Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kangping Technology has no effect on the direction of Luyin Investment i.e., Luyin Investment and Kangping Technology go up and down completely randomly.
Pair Corralation between Luyin Investment and Kangping Technology
Assuming the 90 days trading horizon Luyin Investment is expected to generate 2.44 times less return on investment than Kangping Technology. But when comparing it to its historical volatility, Luyin Investment Group is 1.66 times less risky than Kangping Technology. It trades about 0.02 of its potential returns per unit of risk. Kangping Technology Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,126 in Kangping Technology Co on September 21, 2024 and sell it today you would earn a total of 92.00 from holding Kangping Technology Co or generate 4.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Luyin Investment Group vs. Kangping Technology Co
Performance |
| Timeline |
| Luyin Investment |
| Kangping Technology |
Luyin Investment and Kangping Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luyin Investment and Kangping Technology
The main advantage of trading using opposite Luyin Investment and Kangping Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luyin Investment position performs unexpectedly, Kangping Technology 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 Kangping Technology will offset losses from the drop in Kangping Technology's long position.| Luyin Investment vs. Wanhua Chemical Group | Luyin Investment vs. Baoshan Iron Steel | Luyin Investment vs. Shandong Gold Mining | Luyin Investment vs. Rongsheng Petrochemical Co |
| Kangping Technology vs. Industrial and Commercial | Kangping Technology vs. Agricultural Bank of | Kangping Technology vs. China Construction Bank | Kangping Technology vs. Bank of China |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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