Correlation Between Luyin Investment and Dawning Information
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By analyzing existing cross correlation between Luyin Investment Group and Dawning Information Industry, you can compare the effects of market volatilities on Luyin Investment and Dawning Information 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 Dawning Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luyin Investment and Dawning Information.
Diversification Opportunities for Luyin Investment and Dawning Information
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Luyin and Dawning is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Luyin Investment Group and Dawning Information Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dawning Information 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 Dawning Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dawning Information has no effect on the direction of Luyin Investment i.e., Luyin Investment and Dawning Information go up and down completely randomly.
Pair Corralation between Luyin Investment and Dawning Information
Assuming the 90 days trading horizon Luyin Investment Group is expected to under-perform the Dawning Information. In addition to that, Luyin Investment is 1.08 times more volatile than Dawning Information Industry. It trades about -0.02 of its total potential returns per unit of risk. Dawning Information Industry is currently generating about -0.02 per unit of volatility. If you would invest 6,795 in Dawning Information Industry on November 3, 2024 and sell it today you would lose (96.00) from holding Dawning Information Industry or give up 1.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Luyin Investment Group vs. Dawning Information Industry
Performance |
| Timeline |
| Luyin Investment |
| Dawning Information |
Luyin Investment and Dawning Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luyin Investment and Dawning Information
The main advantage of trading using opposite Luyin Investment and Dawning Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luyin Investment position performs unexpectedly, Dawning Information 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 Dawning Information will offset losses from the drop in Dawning Information'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 |
| Dawning Information vs. Industrial and Commercial | Dawning Information vs. Kweichow Moutai Co | Dawning Information vs. Agricultural Bank of | Dawning Information vs. China Mobile Limited |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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