Correlation Between Shandong Publishing and Luoyang Glass
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By analyzing existing cross correlation between Shandong Publishing Media and Luoyang Glass, you can compare the effects of market volatilities on Shandong Publishing and Luoyang Glass 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 Shandong Publishing with a short position of Luoyang Glass. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Publishing and Luoyang Glass.
Diversification Opportunities for Shandong Publishing and Luoyang Glass
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Shandong and Luoyang is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Publishing Media and Luoyang Glass in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luoyang Glass and Shandong Publishing 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 Shandong Publishing Media are associated (or correlated) with Luoyang Glass. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luoyang Glass has no effect on the direction of Shandong Publishing i.e., Shandong Publishing and Luoyang Glass go up and down completely randomly.
Pair Corralation between Shandong Publishing and Luoyang Glass
Assuming the 90 days trading horizon Shandong Publishing Media is expected to generate 1.5 times more return on investment than Luoyang Glass. However, Shandong Publishing is 1.5 times more volatile than Luoyang Glass. It trades about 0.12 of its potential returns per unit of risk. Luoyang Glass is currently generating about 0.01 per unit of risk. If you would invest 1,086 in Shandong Publishing Media on September 14, 2024 and sell it today you would earn a total of 70.00 from holding Shandong Publishing Media or generate 6.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Publishing Media vs. Luoyang Glass
Performance |
| Timeline |
| Shandong Publishing Media |
| Luoyang Glass |
Shandong Publishing and Luoyang Glass Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Publishing and Luoyang Glass
The main advantage of trading using opposite Shandong Publishing and Luoyang Glass positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Publishing position performs unexpectedly, Luoyang Glass 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 Luoyang Glass will offset losses from the drop in Luoyang Glass' long position.| Shandong Publishing vs. Ming Yang Smart | Shandong Publishing vs. 159681 | Shandong Publishing vs. 159005 | Shandong Publishing vs. Loctek Ergonomic Technology |
| Luoyang Glass vs. Duzhe Publishing Media | Luoyang Glass vs. Shandong Publishing Media | Luoyang Glass vs. Shenzhen Noposion Agrochemicals | Luoyang Glass vs. Will Semiconductor 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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