Correlation Between Luyin Investment and Chongqing Brewery
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By analyzing existing cross correlation between Luyin Investment Group and Chongqing Brewery Co, you can compare the effects of market volatilities on Luyin Investment and Chongqing Brewery 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 Chongqing Brewery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luyin Investment and Chongqing Brewery.
Diversification Opportunities for Luyin Investment and Chongqing Brewery
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Luyin and Chongqing is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Luyin Investment Group and Chongqing Brewery Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Brewery 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 Chongqing Brewery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Brewery has no effect on the direction of Luyin Investment i.e., Luyin Investment and Chongqing Brewery go up and down completely randomly.
Pair Corralation between Luyin Investment and Chongqing Brewery
Assuming the 90 days trading horizon Luyin Investment Group is expected to generate 0.88 times more return on investment than Chongqing Brewery. However, Luyin Investment Group is 1.14 times less risky than Chongqing Brewery. It trades about -0.01 of its potential returns per unit of risk. Chongqing Brewery Co is currently generating about -0.06 per unit of risk. If you would invest 654.00 in Luyin Investment Group on October 16, 2024 and sell it today you would lose (91.00) from holding Luyin Investment Group or give up 13.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Luyin Investment Group vs. Chongqing Brewery Co
Performance |
| Timeline |
| Luyin Investment |
| Chongqing Brewery |
Luyin Investment and Chongqing Brewery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luyin Investment and Chongqing Brewery
The main advantage of trading using opposite Luyin Investment and Chongqing Brewery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luyin Investment position performs unexpectedly, Chongqing Brewery 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 Chongqing Brewery will offset losses from the drop in Chongqing Brewery'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 |
| Chongqing Brewery vs. Union Semiconductor Co | Chongqing Brewery vs. Sichuan Jinshi Technology | Chongqing Brewery vs. Shanghai Shibei Hi Tech | Chongqing Brewery vs. Nanjing Putian Telecommunications |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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