Correlation Between Luyin Investment and Xinjiang Tianrun
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By analyzing existing cross correlation between Luyin Investment Group and Xinjiang Tianrun Dairy, you can compare the effects of market volatilities on Luyin Investment and Xinjiang Tianrun 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 Xinjiang Tianrun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luyin Investment and Xinjiang Tianrun.
Diversification Opportunities for Luyin Investment and Xinjiang Tianrun
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Luyin and Xinjiang is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Luyin Investment Group and Xinjiang Tianrun Dairy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Tianrun Dairy 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 Xinjiang Tianrun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Tianrun Dairy has no effect on the direction of Luyin Investment i.e., Luyin Investment and Xinjiang Tianrun go up and down completely randomly.
Pair Corralation between Luyin Investment and Xinjiang Tianrun
Assuming the 90 days trading horizon Luyin Investment Group is expected to generate 0.92 times more return on investment than Xinjiang Tianrun. However, Luyin Investment Group is 1.09 times less risky than Xinjiang Tianrun. It trades about 0.01 of its potential returns per unit of risk. Xinjiang Tianrun Dairy is currently generating about -0.04 per unit of risk. If you would invest 637.00 in Luyin Investment Group on December 4, 2024 and sell it today you would lose (16.00) from holding Luyin Investment Group or give up 2.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Luyin Investment Group vs. Xinjiang Tianrun Dairy
Performance |
| Timeline |
| Luyin Investment |
| Xinjiang Tianrun Dairy |
Luyin Investment and Xinjiang Tianrun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luyin Investment and Xinjiang Tianrun
The main advantage of trading using opposite Luyin Investment and Xinjiang Tianrun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luyin Investment position performs unexpectedly, Xinjiang Tianrun 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 Xinjiang Tianrun will offset losses from the drop in Xinjiang Tianrun's long position.| Luyin Investment vs. Sportsoul Co Ltd | Luyin Investment vs. Cofoe Medical Technology | Luyin Investment vs. Anhui Gujing Distillery | Luyin Investment vs. CareRay Digital Medical |
| Xinjiang Tianrun vs. Shenzhen SDG Information | Xinjiang Tianrun vs. Wintao Communications Co | Xinjiang Tianrun vs. Aba Chemicals Corp | Xinjiang Tianrun vs. SI TECH Information Technology |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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