Correlation Between Longjian Road and De Rucci
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By analyzing existing cross correlation between Longjian Road Bridge and De Rucci Healthy, you can compare the effects of market volatilities on Longjian Road and De Rucci 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 Longjian Road with a short position of De Rucci. Check out your portfolio center. Please also check ongoing floating volatility patterns of Longjian Road and De Rucci.
Diversification Opportunities for Longjian Road and De Rucci
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Longjian and 001323 is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Longjian Road Bridge and De Rucci Healthy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on De Rucci Healthy and Longjian Road 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 Longjian Road Bridge are associated (or correlated) with De Rucci. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of De Rucci Healthy has no effect on the direction of Longjian Road i.e., Longjian Road and De Rucci go up and down completely randomly.
Pair Corralation between Longjian Road and De Rucci
Assuming the 90 days trading horizon Longjian Road Bridge is expected to generate 1.41 times more return on investment than De Rucci. However, Longjian Road is 1.41 times more volatile than De Rucci Healthy. It trades about 0.03 of its potential returns per unit of risk. De Rucci Healthy is currently generating about 0.03 per unit of risk. If you would invest 321.00 in Longjian Road Bridge on September 3, 2024 and sell it today you would earn a total of 74.00 from holding Longjian Road Bridge or generate 23.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Longjian Road Bridge vs. De Rucci Healthy
Performance |
| Timeline |
| Longjian Road Bridge |
| De Rucci Healthy |
Longjian Road and De Rucci Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Longjian Road and De Rucci
The main advantage of trading using opposite Longjian Road and De Rucci positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Longjian Road position performs unexpectedly, De Rucci 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 De Rucci will offset losses from the drop in De Rucci's long position.| Longjian Road vs. Cultural Investment Holdings | Longjian Road vs. Gome Telecom Equipment | Longjian Road vs. Bus Online Co | Longjian Road vs. Holitech Technology Co |
| De Rucci vs. PetroChina Co Ltd | De Rucci vs. China Mobile Limited | De Rucci vs. Industrial and Commercial | De Rucci vs. China Life Insurance |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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