Correlation Between Luyin Investment and Beijing YanDong
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By analyzing existing cross correlation between Luyin Investment Group and Beijing YanDong MicroElectronic, you can compare the effects of market volatilities on Luyin Investment and Beijing YanDong 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 Beijing YanDong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luyin Investment and Beijing YanDong.
Diversification Opportunities for Luyin Investment and Beijing YanDong
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Luyin and Beijing is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Luyin Investment Group and Beijing YanDong MicroElectroni in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing YanDong Micr 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 Beijing YanDong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing YanDong Micr has no effect on the direction of Luyin Investment i.e., Luyin Investment and Beijing YanDong go up and down completely randomly.
Pair Corralation between Luyin Investment and Beijing YanDong
Assuming the 90 days trading horizon Luyin Investment Group is expected to under-perform the Beijing YanDong. But the stock apears to be less risky and, when comparing its historical volatility, Luyin Investment Group is 1.66 times less risky than Beijing YanDong. The stock trades about -0.01 of its potential returns per unit of risk. The Beijing YanDong MicroElectronic is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,105 in Beijing YanDong MicroElectronic on October 14, 2024 and sell it today you would lose (132.00) from holding Beijing YanDong MicroElectronic or give up 6.27% 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. Beijing YanDong MicroElectroni
Performance |
| Timeline |
| Luyin Investment |
| Beijing YanDong Micr |
Luyin Investment and Beijing YanDong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luyin Investment and Beijing YanDong
The main advantage of trading using opposite Luyin Investment and Beijing YanDong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luyin Investment position performs unexpectedly, Beijing YanDong 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 Beijing YanDong will offset losses from the drop in Beijing YanDong's long position.| Luyin Investment vs. Nanxing Furniture Machinery | Luyin Investment vs. Shaanxi Construction Machinery | Luyin Investment vs. Hainan Airlines Co | Luyin Investment vs. Zhejiang Construction Investment |
| Beijing YanDong vs. China Asset Management | Beijing YanDong vs. Luyin Investment Group | Beijing YanDong vs. Anhui Deli Household | Beijing YanDong vs. Marssenger Kitchenware Co |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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