Correlation Between Luyin Investment and Cngr Advanced
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By analyzing existing cross correlation between Luyin Investment Group and Cngr Advanced Material, you can compare the effects of market volatilities on Luyin Investment and Cngr Advanced 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 Cngr Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luyin Investment and Cngr Advanced.
Diversification Opportunities for Luyin Investment and Cngr Advanced
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Luyin and Cngr is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Luyin Investment Group and Cngr Advanced Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cngr Advanced Material 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 Cngr Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cngr Advanced Material has no effect on the direction of Luyin Investment i.e., Luyin Investment and Cngr Advanced go up and down completely randomly.
Pair Corralation between Luyin Investment and Cngr Advanced
Assuming the 90 days trading horizon Luyin Investment is expected to generate 1.16 times less return on investment than Cngr Advanced. But when comparing it to its historical volatility, Luyin Investment Group is 1.74 times less risky than Cngr Advanced. It trades about 0.05 of its potential returns per unit of risk. Cngr Advanced Material is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 3,690 in Cngr Advanced Material on September 3, 2024 and sell it today you would earn a total of 308.00 from holding Cngr Advanced Material or generate 8.35% 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. Cngr Advanced Material
Performance |
| Timeline |
| Luyin Investment |
| Cngr Advanced Material |
Luyin Investment and Cngr Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luyin Investment and Cngr Advanced
The main advantage of trading using opposite Luyin Investment and Cngr Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luyin Investment position performs unexpectedly, Cngr Advanced 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 Cngr Advanced will offset losses from the drop in Cngr Advanced's long position.| Luyin Investment vs. Hunan Investment Group | Luyin Investment vs. King Strong New Material | Luyin Investment vs. Super Dragon Engineering Plastics | Luyin Investment vs. Anhui Deli Household |
| Cngr Advanced vs. Zijin Mining Group | Cngr Advanced vs. Baoshan Iron Steel | Cngr Advanced vs. Rongsheng Petrochemical Co | Cngr Advanced vs. Hoshine Silicon Ind |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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