Correlation Between Luyin Investment and Shaanxi Broadcast
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By analyzing existing cross correlation between Luyin Investment Group and Shaanxi Broadcast TV, you can compare the effects of market volatilities on Luyin Investment and Shaanxi Broadcast 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 Shaanxi Broadcast. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luyin Investment and Shaanxi Broadcast.
Diversification Opportunities for Luyin Investment and Shaanxi Broadcast
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Luyin and Shaanxi is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Luyin Investment Group and Shaanxi Broadcast TV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Broadcast 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 Shaanxi Broadcast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Broadcast has no effect on the direction of Luyin Investment i.e., Luyin Investment and Shaanxi Broadcast go up and down completely randomly.
Pair Corralation between Luyin Investment and Shaanxi Broadcast
Assuming the 90 days trading horizon Luyin Investment Group is expected to generate 0.62 times more return on investment than Shaanxi Broadcast. However, Luyin Investment Group is 1.61 times less risky than Shaanxi Broadcast. It trades about 0.09 of its potential returns per unit of risk. Shaanxi Broadcast TV is currently generating about -0.03 per unit of risk. If you would invest 503.00 in Luyin Investment Group on August 30, 2024 and sell it today you would earn a total of 107.00 from holding Luyin Investment Group or generate 21.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Luyin Investment Group vs. Shaanxi Broadcast TV
Performance |
| Timeline |
| Luyin Investment |
| Shaanxi Broadcast |
Luyin Investment and Shaanxi Broadcast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luyin Investment and Shaanxi Broadcast
The main advantage of trading using opposite Luyin Investment and Shaanxi Broadcast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luyin Investment position performs unexpectedly, Shaanxi Broadcast 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 Shaanxi Broadcast will offset losses from the drop in Shaanxi Broadcast's long position.| Luyin Investment vs. Wanhua Chemical Group | Luyin Investment vs. Baoshan Iron Steel | Luyin Investment vs. Rongsheng Petrochemical Co | Luyin Investment vs. Hoshine Silicon Ind |
| Shaanxi Broadcast vs. Chengdu Spaceon Electronics | Shaanxi Broadcast vs. Luyin Investment Group | Shaanxi Broadcast vs. JCHX Mining Management | Shaanxi Broadcast vs. Anhui Gujing Distillery |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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