Correlation Between Luyin Investment and Beijing Sanyuan
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By analyzing existing cross correlation between Luyin Investment Group and Beijing Sanyuan Foods, you can compare the effects of market volatilities on Luyin Investment and Beijing Sanyuan 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 Beijing Sanyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luyin Investment and Beijing Sanyuan.
Diversification Opportunities for Luyin Investment and Beijing Sanyuan
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Luyin and Beijing is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Luyin Investment Group and Beijing Sanyuan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Sanyuan Foods 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 Beijing Sanyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Sanyuan Foods has no effect on the direction of Luyin Investment i.e., Luyin Investment and Beijing Sanyuan go up and down completely randomly.
Pair Corralation between Luyin Investment and Beijing Sanyuan
Assuming the 90 days trading horizon Luyin Investment Group is expected to generate 0.73 times more return on investment than Beijing Sanyuan. However, Luyin Investment Group is 1.38 times less risky than Beijing Sanyuan. It trades about -0.28 of its potential returns per unit of risk. Beijing Sanyuan Foods is currently generating about -0.28 per unit of risk. If you would invest 628.00 in Luyin Investment Group on October 20, 2024 and sell it today you would lose (65.00) from holding Luyin Investment Group or give up 10.35% 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. Beijing Sanyuan Foods
Performance |
| Timeline |
| Luyin Investment |
| Beijing Sanyuan Foods |
Luyin Investment and Beijing Sanyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luyin Investment and Beijing Sanyuan
The main advantage of trading using opposite Luyin Investment and Beijing Sanyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luyin Investment position performs unexpectedly, Beijing Sanyuan 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 Beijing Sanyuan will offset losses from the drop in Beijing Sanyuan's long position.| Luyin Investment vs. Allgens Medical Technology | Luyin Investment vs. Cowealth Medical China | Luyin Investment vs. Allmed Medical Products | Luyin Investment vs. Agricultural Bank of |
| Beijing Sanyuan vs. Fibocom Wireless | Beijing Sanyuan vs. Emdoor Information Co | Beijing Sanyuan vs. Zhongfu Information | Beijing Sanyuan vs. Dawning Information Industry |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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