Correlation Between Luoyang Glass and Kingclean Electric
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By analyzing existing cross correlation between Luoyang Glass and Kingclean Electric Co, you can compare the effects of market volatilities on Luoyang Glass and Kingclean Electric 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 Kingclean Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luoyang Glass and Kingclean Electric.
Diversification Opportunities for Luoyang Glass and Kingclean Electric
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Luoyang and Kingclean is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Luoyang Glass and Kingclean Electric Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingclean Electric 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 Kingclean Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingclean Electric has no effect on the direction of Luoyang Glass i.e., Luoyang Glass and Kingclean Electric go up and down completely randomly.
Pair Corralation between Luoyang Glass and Kingclean Electric
Assuming the 90 days trading horizon Luoyang Glass is expected to generate 1.16 times more return on investment than Kingclean Electric. However, Luoyang Glass is 1.16 times more volatile than Kingclean Electric Co. It trades about 0.0 of its potential returns per unit of risk. Kingclean Electric Co is currently generating about -0.11 per unit of risk. If you would invest 1,075 in Luoyang Glass on September 13, 2024 and sell it today you would lose (2.00) from holding Luoyang Glass or give up 0.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Luoyang Glass vs. Kingclean Electric Co
Performance |
| Timeline |
| Luoyang Glass |
| Kingclean Electric |
Luoyang Glass and Kingclean Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luoyang Glass and Kingclean Electric
The main advantage of trading using opposite Luoyang Glass and Kingclean Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luoyang Glass position performs unexpectedly, Kingclean Electric 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 Kingclean Electric will offset losses from the drop in Kingclean Electric's long position.| Luoyang Glass vs. Duzhe Publishing Media | Luoyang Glass vs. Shandong Publishing Media | Luoyang Glass vs. Shenzhen Noposion Agrochemicals | Luoyang Glass vs. Will Semiconductor Co |
| Kingclean Electric vs. Anji Foodstuff Co | Kingclean Electric vs. Great Sun Foods Co | Kingclean Electric vs. Beijing Yanjing Brewery | Kingclean Electric vs. Eastroc Beverage Group |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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