Correlation Between Luyin Investment and Shanghai Material
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By analyzing existing cross correlation between Luyin Investment Group and Shanghai Material Trading, you can compare the effects of market volatilities on Luyin Investment and Shanghai Material 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 Shanghai Material. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luyin Investment and Shanghai Material.
Diversification Opportunities for Luyin Investment and Shanghai Material
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Luyin and Shanghai is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Luyin Investment Group and Shanghai Material Trading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Material Trading 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 Shanghai Material. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Material Trading has no effect on the direction of Luyin Investment i.e., Luyin Investment and Shanghai Material go up and down completely randomly.
Pair Corralation between Luyin Investment and Shanghai Material
Assuming the 90 days trading horizon Luyin Investment Group is expected to generate 0.5 times more return on investment than Shanghai Material. However, Luyin Investment Group is 1.99 times less risky than Shanghai Material. It trades about -0.33 of its potential returns per unit of risk. Shanghai Material Trading is currently generating about -0.29 per unit of risk. If you would invest 640.00 in Luyin Investment Group on October 12, 2024 and sell it today you would lose (73.00) from holding Luyin Investment Group or give up 11.41% 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. Shanghai Material Trading
Performance |
| Timeline |
| Luyin Investment |
| Shanghai Material Trading |
Luyin Investment and Shanghai Material Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luyin Investment and Shanghai Material
The main advantage of trading using opposite Luyin Investment and Shanghai Material positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luyin Investment position performs unexpectedly, Shanghai Material 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 Shanghai Material will offset losses from the drop in Shanghai Material's long position.| Luyin Investment vs. Gansu Jiu Steel | Luyin Investment vs. Central Plains Environment | Luyin Investment vs. Anyang Iron Steel | Luyin Investment vs. Eastroc Beverage Group |
| Shanghai Material vs. China Minmetals Rare | Shanghai Material vs. Xiandai Investment Co | Shanghai Material vs. Guangdong Jingyi Metal | Shanghai Material vs. Beijing Mainstreets Investment |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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