Correlation Between Longjian Road and Chinese Universe
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By analyzing existing cross correlation between Longjian Road Bridge and Chinese Universe Publishing, you can compare the effects of market volatilities on Longjian Road and Chinese Universe 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 Chinese Universe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Longjian Road and Chinese Universe.
Diversification Opportunities for Longjian Road and Chinese Universe
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Longjian and Chinese is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Longjian Road Bridge and Chinese Universe Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chinese Universe Pub 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 Chinese Universe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chinese Universe Pub has no effect on the direction of Longjian Road i.e., Longjian Road and Chinese Universe go up and down completely randomly.
Pair Corralation between Longjian Road and Chinese Universe
Assuming the 90 days trading horizon Longjian Road Bridge is expected to generate 0.74 times more return on investment than Chinese Universe. However, Longjian Road Bridge is 1.35 times less risky than Chinese Universe. It trades about 0.0 of its potential returns per unit of risk. Chinese Universe Publishing is currently generating about -0.29 per unit of risk. If you would invest 381.00 in Longjian Road Bridge on August 29, 2024 and sell it today you would lose (1.00) from holding Longjian Road Bridge or give up 0.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Longjian Road Bridge vs. Chinese Universe Publishing
Performance |
| Timeline |
| Longjian Road Bridge |
| Chinese Universe Pub |
Longjian Road and Chinese Universe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Longjian Road and Chinese Universe
The main advantage of trading using opposite Longjian Road and Chinese Universe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Longjian Road position performs unexpectedly, Chinese Universe 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 Chinese Universe will offset losses from the drop in Chinese Universe's long position.| Longjian Road vs. Guangzhou Jinyi Media | Longjian Road vs. Nexchip Semiconductor Corp | Longjian Road vs. Northern United Publishing | Longjian Road vs. Sportsoul Co Ltd |
| Chinese Universe vs. China State Construction | Chinese Universe vs. Huafa Industrial Co | Chinese Universe vs. China International Capital | Chinese Universe vs. Kweichow Moutai 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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