Correlation Between Luyin Investment and Fujian Nanwang
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By analyzing existing cross correlation between Luyin Investment Group and Fujian Nanwang Environment, you can compare the effects of market volatilities on Luyin Investment and Fujian Nanwang 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 Fujian Nanwang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luyin Investment and Fujian Nanwang.
Diversification Opportunities for Luyin Investment and Fujian Nanwang
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Luyin and Fujian is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Luyin Investment Group and Fujian Nanwang Environment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Nanwang Envir 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 Fujian Nanwang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Nanwang Envir has no effect on the direction of Luyin Investment i.e., Luyin Investment and Fujian Nanwang go up and down completely randomly.
Pair Corralation between Luyin Investment and Fujian Nanwang
Assuming the 90 days trading horizon Luyin Investment Group is expected to under-perform the Fujian Nanwang. But the stock apears to be less risky and, when comparing its historical volatility, Luyin Investment Group is 1.08 times less risky than Fujian Nanwang. The stock trades about -0.33 of its potential returns per unit of risk. The Fujian Nanwang Environment is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 1,279 in Fujian Nanwang Environment on October 12, 2024 and sell it today you would earn a total of 141.00 from holding Fujian Nanwang Environment or generate 11.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Luyin Investment Group vs. Fujian Nanwang Environment
Performance |
| Timeline |
| Luyin Investment |
| Fujian Nanwang Envir |
Luyin Investment and Fujian Nanwang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luyin Investment and Fujian Nanwang
The main advantage of trading using opposite Luyin Investment and Fujian Nanwang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luyin Investment position performs unexpectedly, Fujian Nanwang 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 Fujian Nanwang will offset losses from the drop in Fujian Nanwang's long position.| Luyin Investment vs. Gansu Jiu Steel | Luyin Investment vs. Central Plains Environment | Luyin Investment vs. Anyang Iron Steel | Luyin Investment vs. Eastroc Beverage Group |
| Fujian Nanwang vs. Jinxiandai Information Industry | Fujian Nanwang vs. Leyard Optoelectronic | Fujian Nanwang vs. Success Electronics | Fujian Nanwang vs. Jinlong Machinery Electronic |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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