Correlation Between Luyin Investment and Baoshan Iron
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By analyzing existing cross correlation between Luyin Investment Group and Baoshan Iron Steel, you can compare the effects of market volatilities on Luyin Investment and Baoshan Iron 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 Baoshan Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luyin Investment and Baoshan Iron.
Diversification Opportunities for Luyin Investment and Baoshan Iron
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Luyin and Baoshan is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Luyin Investment Group and Baoshan Iron Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baoshan Iron Steel 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 Baoshan Iron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baoshan Iron Steel has no effect on the direction of Luyin Investment i.e., Luyin Investment and Baoshan Iron go up and down completely randomly.
Pair Corralation between Luyin Investment and Baoshan Iron
Assuming the 90 days trading horizon Luyin Investment is expected to generate 14.54 times less return on investment than Baoshan Iron. In addition to that, Luyin Investment is 1.19 times more volatile than Baoshan Iron Steel. It trades about 0.0 of its total potential returns per unit of risk. Baoshan Iron Steel is currently generating about 0.01 per unit of volatility. If you would invest 658.00 in Baoshan Iron Steel on November 27, 2024 and sell it today you would earn a total of 14.00 from holding Baoshan Iron Steel or generate 2.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Luyin Investment Group vs. Baoshan Iron Steel
Performance |
| Timeline |
| Luyin Investment |
| Baoshan Iron Steel |
Luyin Investment and Baoshan Iron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luyin Investment and Baoshan Iron
The main advantage of trading using opposite Luyin Investment and Baoshan Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luyin Investment position performs unexpectedly, Baoshan Iron 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 Baoshan Iron will offset losses from the drop in Baoshan Iron's long position.| Luyin Investment vs. Suzhou Mingzhi Technology | Luyin Investment vs. Zoje Resources Investment | Luyin Investment vs. Kunwu Jiuding Investment | Luyin Investment vs. Unisplendour Corp |
| Baoshan Iron vs. China Sports Industry | Baoshan Iron vs. Keda Clean Energy | Baoshan Iron vs. Shaanxi Meineng Clean | Baoshan Iron vs. Guangzhou Haige Communications |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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