Correlation Between Luyin Investment and Long Yuan
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By analyzing existing cross correlation between Luyin Investment Group and Long Yuan Construction, you can compare the effects of market volatilities on Luyin Investment and Long Yuan 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 Long Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luyin Investment and Long Yuan.
Diversification Opportunities for Luyin Investment and Long Yuan
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Luyin and Long is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Luyin Investment Group and Long Yuan Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Long Yuan Construction 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 Long Yuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Long Yuan Construction has no effect on the direction of Luyin Investment i.e., Luyin Investment and Long Yuan go up and down completely randomly.
Pair Corralation between Luyin Investment and Long Yuan
Assuming the 90 days trading horizon Luyin Investment Group is expected to under-perform the Long Yuan. But the stock apears to be less risky and, when comparing its historical volatility, Luyin Investment Group is 1.01 times less risky than Long Yuan. The stock trades about -0.02 of its potential returns per unit of risk. The Long Yuan Construction is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 366.00 in Long Yuan Construction on November 3, 2024 and sell it today you would earn a total of 0.00 from holding Long Yuan Construction or generate 0.0% 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. Long Yuan Construction
Performance |
| Timeline |
| Luyin Investment |
| Long Yuan Construction |
Luyin Investment and Long Yuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luyin Investment and Long Yuan
The main advantage of trading using opposite Luyin Investment and Long Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luyin Investment position performs unexpectedly, Long Yuan 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 Long Yuan will offset losses from the drop in Long Yuan'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 |
| Long Yuan vs. Zotye Automobile Co | Long Yuan vs. Guangdong Ellington Electronics | Long Yuan vs. Dongfeng Automobile Co | Long Yuan vs. Epoxy Base Electronic |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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