Correlation Between Luyin Investment and Qinghaihuading Industrial
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By analyzing existing cross correlation between Luyin Investment Group and Qinghaihuading Industrial Co, you can compare the effects of market volatilities on Luyin Investment and Qinghaihuading Industrial 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 Qinghaihuading Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luyin Investment and Qinghaihuading Industrial.
Diversification Opportunities for Luyin Investment and Qinghaihuading Industrial
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Luyin and Qinghaihuading is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Luyin Investment Group and Qinghaihuading Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qinghaihuading Industrial 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 Qinghaihuading Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qinghaihuading Industrial has no effect on the direction of Luyin Investment i.e., Luyin Investment and Qinghaihuading Industrial go up and down completely randomly.
Pair Corralation between Luyin Investment and Qinghaihuading Industrial
Assuming the 90 days trading horizon Luyin Investment is expected to generate 6.87 times less return on investment than Qinghaihuading Industrial. But when comparing it to its historical volatility, Luyin Investment Group is 1.67 times less risky than Qinghaihuading Industrial. It trades about 0.0 of its potential returns per unit of risk. Qinghaihuading Industrial Co is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 407.00 in Qinghaihuading Industrial Co on October 9, 2024 and sell it today you would lose (61.00) from holding Qinghaihuading Industrial Co or give up 14.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Luyin Investment Group vs. Qinghaihuading Industrial Co
Performance |
| Timeline |
| Luyin Investment |
| Qinghaihuading Industrial |
Luyin Investment and Qinghaihuading Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luyin Investment and Qinghaihuading Industrial
The main advantage of trading using opposite Luyin Investment and Qinghaihuading Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luyin Investment position performs unexpectedly, Qinghaihuading Industrial 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 Qinghaihuading Industrial will offset losses from the drop in Qinghaihuading Industrial's long position.| Luyin Investment vs. Zijin Mining Group | Luyin Investment vs. Wanhua Chemical Group | Luyin Investment vs. Baoshan Iron Steel | Luyin Investment vs. Shandong Gold Mining |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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