Correlation Between Luyin Investment and Cansino Biologics
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By analyzing existing cross correlation between Luyin Investment Group and Cansino Biologics, you can compare the effects of market volatilities on Luyin Investment and Cansino Biologics 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 Cansino Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luyin Investment and Cansino Biologics.
Diversification Opportunities for Luyin Investment and Cansino Biologics
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Luyin and Cansino is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Luyin Investment Group and Cansino Biologics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cansino Biologics 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 Cansino Biologics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cansino Biologics has no effect on the direction of Luyin Investment i.e., Luyin Investment and Cansino Biologics go up and down completely randomly.
Pair Corralation between Luyin Investment and Cansino Biologics
Assuming the 90 days trading horizon Luyin Investment is expected to generate 1.42 times less return on investment than Cansino Biologics. But when comparing it to its historical volatility, Luyin Investment Group is 1.98 times less risky than Cansino Biologics. It trades about 0.07 of its potential returns per unit of risk. Cansino Biologics is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 4,642 in Cansino Biologics on October 13, 2024 and sell it today you would earn a total of 869.00 from holding Cansino Biologics or generate 18.72% 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. Cansino Biologics
Performance |
| Timeline |
| Luyin Investment |
| Cansino Biologics |
Luyin Investment and Cansino Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luyin Investment and Cansino Biologics
The main advantage of trading using opposite Luyin Investment and Cansino Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luyin Investment position performs unexpectedly, Cansino Biologics 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 Cansino Biologics will offset losses from the drop in Cansino Biologics' long position.| Luyin Investment vs. Masterwork Machinery | Luyin Investment vs. Gifore Agricultural Machinery | Luyin Investment vs. Jointo Energy Investment | Luyin Investment vs. Sinomach General Machinery |
| Cansino Biologics vs. Sharetronic Data Technology | Cansino Biologics vs. HanS Laser Tech | Cansino Biologics vs. JiShi Media Co | Cansino Biologics vs. Cabio Biotech Wuhan |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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