Correlation Between Luyin Investment and Shanghai Shuixing
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By analyzing existing cross correlation between Luyin Investment Group and Shanghai Shuixing Home, you can compare the effects of market volatilities on Luyin Investment and Shanghai Shuixing 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 Shuixing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luyin Investment and Shanghai Shuixing.
Diversification Opportunities for Luyin Investment and Shanghai Shuixing
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Luyin and Shanghai is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Luyin Investment Group and Shanghai Shuixing Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Shuixing Home 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 Shuixing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Shuixing Home has no effect on the direction of Luyin Investment i.e., Luyin Investment and Shanghai Shuixing go up and down completely randomly.
Pair Corralation between Luyin Investment and Shanghai Shuixing
Assuming the 90 days trading horizon Luyin Investment Group is expected to under-perform the Shanghai Shuixing. But the stock apears to be less risky and, when comparing its historical volatility, Luyin Investment Group is 1.11 times less risky than Shanghai Shuixing. The stock trades about -0.01 of its potential returns per unit of risk. The Shanghai Shuixing Home is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,329 in Shanghai Shuixing Home on October 16, 2024 and sell it today you would earn a total of 225.00 from holding Shanghai Shuixing Home or generate 16.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Luyin Investment Group vs. Shanghai Shuixing Home
Performance |
| Timeline |
| Luyin Investment |
| Shanghai Shuixing Home |
Luyin Investment and Shanghai Shuixing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luyin Investment and Shanghai Shuixing
The main advantage of trading using opposite Luyin Investment and Shanghai Shuixing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luyin Investment position performs unexpectedly, Shanghai Shuixing 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 Shuixing will offset losses from the drop in Shanghai Shuixing's long position.| Luyin Investment vs. Masterwork Machinery | Luyin Investment vs. Shaanxi Construction Machinery | Luyin Investment vs. Gifore Agricultural Machinery | Luyin Investment vs. Shaanxi Meineng Clean |
| Shanghai Shuixing vs. Henan Shuanghui Investment | Shanghai Shuixing vs. Tianshui Huatian Technology | Shanghai Shuixing vs. 360 Security Technology | Shanghai Shuixing vs. Luyin Investment Group |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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