Correlation Between Luyin Investment and China Galaxy
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By analyzing existing cross correlation between Luyin Investment Group and China Galaxy Securities, you can compare the effects of market volatilities on Luyin Investment and China Galaxy 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 China Galaxy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luyin Investment and China Galaxy.
Diversification Opportunities for Luyin Investment and China Galaxy
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Luyin and China is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Luyin Investment Group and China Galaxy Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Galaxy Securities 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 China Galaxy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Galaxy Securities has no effect on the direction of Luyin Investment i.e., Luyin Investment and China Galaxy go up and down completely randomly.
Pair Corralation between Luyin Investment and China Galaxy
Assuming the 90 days trading horizon Luyin Investment Group is expected to under-perform the China Galaxy. In addition to that, Luyin Investment is 1.48 times more volatile than China Galaxy Securities. It trades about -0.03 of its total potential returns per unit of risk. China Galaxy Securities is currently generating about 0.05 per unit of volatility. If you would invest 1,559 in China Galaxy Securities on September 30, 2024 and sell it today you would earn a total of 19.00 from holding China Galaxy Securities or generate 1.22% 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. China Galaxy Securities
Performance |
| Timeline |
| Luyin Investment |
| China Galaxy Securities |
Luyin Investment and China Galaxy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luyin Investment and China Galaxy
The main advantage of trading using opposite Luyin Investment and China Galaxy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luyin Investment position performs unexpectedly, China Galaxy 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 China Galaxy will offset losses from the drop in China Galaxy's long position.| Luyin Investment vs. Wanhua Chemical Group | Luyin Investment vs. Shandong Gold Mining | Luyin Investment vs. Rongsheng Petrochemical Co | Luyin Investment vs. Inner Mongolia BaoTou |
| China Galaxy vs. Kweichow Moutai Co | China Galaxy vs. Contemporary Amperex Technology | China Galaxy vs. G bits Network Technology | China Galaxy vs. BYD Co Ltd |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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