Correlation Between Luyin Investment and Hangzhou Pinming
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By analyzing existing cross correlation between Luyin Investment Group and Hangzhou Pinming Software, you can compare the effects of market volatilities on Luyin Investment and Hangzhou Pinming 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 Hangzhou Pinming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luyin Investment and Hangzhou Pinming.
Diversification Opportunities for Luyin Investment and Hangzhou Pinming
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Luyin and Hangzhou is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Luyin Investment Group and Hangzhou Pinming Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Pinming Software 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 Hangzhou Pinming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Pinming Software has no effect on the direction of Luyin Investment i.e., Luyin Investment and Hangzhou Pinming go up and down completely randomly.
Pair Corralation between Luyin Investment and Hangzhou Pinming
Assuming the 90 days trading horizon Luyin Investment is expected to generate 7.26 times less return on investment than Hangzhou Pinming. In addition to that, Luyin Investment is 1.38 times more volatile than Hangzhou Pinming Software. It trades about 0.04 of its total potential returns per unit of risk. Hangzhou Pinming Software is currently generating about 0.45 per unit of volatility. If you would invest 2,202 in Hangzhou Pinming Software on November 5, 2024 and sell it today you would earn a total of 364.00 from holding Hangzhou Pinming Software or generate 16.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Luyin Investment Group vs. Hangzhou Pinming Software
Performance |
| Timeline |
| Luyin Investment |
| Hangzhou Pinming Software |
Luyin Investment and Hangzhou Pinming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luyin Investment and Hangzhou Pinming
The main advantage of trading using opposite Luyin Investment and Hangzhou Pinming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luyin Investment position performs unexpectedly, Hangzhou Pinming 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 Hangzhou Pinming will offset losses from the drop in Hangzhou Pinming'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 |
| Hangzhou Pinming vs. Jiangsu Financial Leasing | Hangzhou Pinming vs. Nuode Investment Co | Hangzhou Pinming vs. China Asset Management | Hangzhou Pinming vs. Zoje Resources 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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