Correlation Between Luyin Investment and Zhejiang HISUN
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By analyzing existing cross correlation between Luyin Investment Group and Zhejiang HISUN Biomaterials, you can compare the effects of market volatilities on Luyin Investment and Zhejiang HISUN 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 Zhejiang HISUN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luyin Investment and Zhejiang HISUN.
Diversification Opportunities for Luyin Investment and Zhejiang HISUN
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Luyin and Zhejiang is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Luyin Investment Group and Zhejiang HISUN Biomaterials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang HISUN Bioma 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 Zhejiang HISUN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang HISUN Bioma has no effect on the direction of Luyin Investment i.e., Luyin Investment and Zhejiang HISUN go up and down completely randomly.
Pair Corralation between Luyin Investment and Zhejiang HISUN
Assuming the 90 days trading horizon Luyin Investment Group is expected to generate 1.06 times more return on investment than Zhejiang HISUN. However, Luyin Investment is 1.06 times more volatile than Zhejiang HISUN Biomaterials. It trades about 0.15 of its potential returns per unit of risk. Zhejiang HISUN Biomaterials is currently generating about 0.04 per unit of risk. If you would invest 614.00 in Luyin Investment Group on September 14, 2024 and sell it today you would earn a total of 38.00 from holding Luyin Investment Group or generate 6.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Luyin Investment Group vs. Zhejiang HISUN Biomaterials
Performance |
| Timeline |
| Luyin Investment |
| Zhejiang HISUN Bioma |
Luyin Investment and Zhejiang HISUN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luyin Investment and Zhejiang HISUN
The main advantage of trading using opposite Luyin Investment and Zhejiang HISUN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luyin Investment position performs unexpectedly, Zhejiang HISUN 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 Zhejiang HISUN will offset losses from the drop in Zhejiang HISUN'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 |
| Zhejiang HISUN vs. Lander Sports Development | Zhejiang HISUN vs. Hua Xia Bank | Zhejiang HISUN vs. China World Trade | Zhejiang HISUN vs. Panda Financial Holding |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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