Correlation Between Luoyang Glass and Arrow Home
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By analyzing existing cross correlation between Luoyang Glass and Arrow Home Group, you can compare the effects of market volatilities on Luoyang Glass and Arrow Home 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 Luoyang Glass with a short position of Arrow Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luoyang Glass and Arrow Home.
Diversification Opportunities for Luoyang Glass and Arrow Home
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Luoyang and Arrow is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Luoyang Glass and Arrow Home Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arrow Home Group and Luoyang Glass 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 Luoyang Glass are associated (or correlated) with Arrow Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arrow Home Group has no effect on the direction of Luoyang Glass i.e., Luoyang Glass and Arrow Home go up and down completely randomly.
Pair Corralation between Luoyang Glass and Arrow Home
Assuming the 90 days trading horizon Luoyang Glass is expected to generate 1.01 times more return on investment than Arrow Home. However, Luoyang Glass is 1.01 times more volatile than Arrow Home Group. It trades about -0.12 of its potential returns per unit of risk. Arrow Home Group is currently generating about -0.24 per unit of risk. If you would invest 1,107 in Luoyang Glass on August 29, 2024 and sell it today you would lose (67.00) from holding Luoyang Glass or give up 6.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Luoyang Glass vs. Arrow Home Group
Performance |
| Timeline |
| Luoyang Glass |
| Arrow Home Group |
Luoyang Glass and Arrow Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luoyang Glass and Arrow Home
The main advantage of trading using opposite Luoyang Glass and Arrow Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luoyang Glass position performs unexpectedly, Arrow Home 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 Arrow Home will offset losses from the drop in Arrow Home's long position.| Luoyang Glass vs. PetroChina Co Ltd | Luoyang Glass vs. China State Construction | Luoyang Glass vs. China Mobile Limited | Luoyang Glass vs. Industrial and Commercial |
| Arrow Home vs. Luoyang Glass | Arrow Home vs. Gansu Jiu Steel | Arrow Home vs. Shenzhen MTC Co | Arrow Home vs. Ming Yang Smart |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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