Correlation Between Luoyang Glass and Cultural Investment
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By analyzing existing cross correlation between Luoyang Glass and Cultural Investment Holdings, you can compare the effects of market volatilities on Luoyang Glass and Cultural Investment 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 Cultural Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luoyang Glass and Cultural Investment.
Diversification Opportunities for Luoyang Glass and Cultural Investment
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Luoyang and Cultural is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Luoyang Glass and Cultural Investment Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cultural Investment 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 Cultural Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cultural Investment has no effect on the direction of Luoyang Glass i.e., Luoyang Glass and Cultural Investment go up and down completely randomly.
Pair Corralation between Luoyang Glass and Cultural Investment
Assuming the 90 days trading horizon Luoyang Glass is expected to generate 1.23 times less return on investment than Cultural Investment. In addition to that, Luoyang Glass is 1.06 times more volatile than Cultural Investment Holdings. It trades about 0.1 of its total potential returns per unit of risk. Cultural Investment Holdings is currently generating about 0.13 per unit of volatility. If you would invest 189.00 in Cultural Investment Holdings on September 12, 2024 and sell it today you would earn a total of 43.00 from holding Cultural Investment Holdings or generate 22.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Luoyang Glass vs. Cultural Investment Holdings
Performance |
| Timeline |
| Luoyang Glass |
| Cultural Investment |
Luoyang Glass and Cultural Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luoyang Glass and Cultural Investment
The main advantage of trading using opposite Luoyang Glass and Cultural Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luoyang Glass position performs unexpectedly, Cultural Investment 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 Cultural Investment will offset losses from the drop in Cultural Investment's long position.| Luoyang Glass vs. Agricultural Bank of | Luoyang Glass vs. Industrial and Commercial | Luoyang Glass vs. Bank of China | Luoyang Glass vs. PetroChina Co Ltd |
| Cultural Investment vs. Kweichow Moutai Co | Cultural Investment vs. Shenzhen Mindray Bio Medical | Cultural Investment vs. G bits Network Technology | Cultural Investment vs. Beijing Roborock Technology |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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