Correlation Between Luyin Investment and Jiangxi Copper
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By analyzing existing cross correlation between Luyin Investment Group and Jiangxi Copper Co, you can compare the effects of market volatilities on Luyin Investment and Jiangxi Copper 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 Jiangxi Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luyin Investment and Jiangxi Copper.
Diversification Opportunities for Luyin Investment and Jiangxi Copper
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Luyin and Jiangxi is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Luyin Investment Group and Jiangxi Copper Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Copper 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 Jiangxi Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Copper has no effect on the direction of Luyin Investment i.e., Luyin Investment and Jiangxi Copper go up and down completely randomly.
Pair Corralation between Luyin Investment and Jiangxi Copper
Assuming the 90 days trading horizon Luyin Investment is expected to generate 10.7 times less return on investment than Jiangxi Copper. In addition to that, Luyin Investment is 1.07 times more volatile than Jiangxi Copper Co. It trades about 0.0 of its total potential returns per unit of risk. Jiangxi Copper Co is currently generating about 0.03 per unit of volatility. If you would invest 1,711 in Jiangxi Copper Co on September 3, 2024 and sell it today you would earn a total of 394.00 from holding Jiangxi Copper Co or generate 23.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Luyin Investment Group vs. Jiangxi Copper Co
Performance |
| Timeline |
| Luyin Investment |
| Jiangxi Copper |
Luyin Investment and Jiangxi Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luyin Investment and Jiangxi Copper
The main advantage of trading using opposite Luyin Investment and Jiangxi Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luyin Investment position performs unexpectedly, Jiangxi Copper 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 Jiangxi Copper will offset losses from the drop in Jiangxi Copper'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 |
| Jiangxi Copper vs. Bangyan Technology Co | Jiangxi Copper vs. Xiandai Investment Co | Jiangxi Copper vs. Chengdu Xingrong Investment | Jiangxi Copper vs. Luyin Investment Group |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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