Correlation Between Yonghui Superstores and Luenmei Quantum
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By analyzing existing cross correlation between Yonghui Superstores Co and Luenmei Quantum Co, you can compare the effects of market volatilities on Yonghui Superstores and Luenmei Quantum 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 Yonghui Superstores with a short position of Luenmei Quantum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yonghui Superstores and Luenmei Quantum.
Diversification Opportunities for Yonghui Superstores and Luenmei Quantum
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yonghui and Luenmei is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Yonghui Superstores Co and Luenmei Quantum Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luenmei Quantum and Yonghui Superstores 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 Yonghui Superstores Co are associated (or correlated) with Luenmei Quantum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luenmei Quantum has no effect on the direction of Yonghui Superstores i.e., Yonghui Superstores and Luenmei Quantum go up and down completely randomly.
Pair Corralation between Yonghui Superstores and Luenmei Quantum
Assuming the 90 days trading horizon Yonghui Superstores Co is expected to generate 4.51 times more return on investment than Luenmei Quantum. However, Yonghui Superstores is 4.51 times more volatile than Luenmei Quantum Co. It trades about 0.03 of its potential returns per unit of risk. Luenmei Quantum Co is currently generating about 0.01 per unit of risk. If you would invest 418.00 in Yonghui Superstores Co on August 28, 2024 and sell it today you would earn a total of 3.00 from holding Yonghui Superstores Co or generate 0.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yonghui Superstores Co vs. Luenmei Quantum Co
Performance |
| Timeline |
| Yonghui Superstores |
| Luenmei Quantum |
Yonghui Superstores and Luenmei Quantum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yonghui Superstores and Luenmei Quantum
The main advantage of trading using opposite Yonghui Superstores and Luenmei Quantum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yonghui Superstores position performs unexpectedly, Luenmei Quantum 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 Luenmei Quantum will offset losses from the drop in Luenmei Quantum's long position.| Yonghui Superstores vs. Haima Automobile Group | Yonghui Superstores vs. Sportsoul Co Ltd | Yonghui Superstores vs. Xiangyang Automobile Bearing | Yonghui Superstores vs. Shuhua Sports Co |
| Luenmei Quantum vs. Holitech Technology Co | Luenmei Quantum vs. Soyea Technology Co | Luenmei Quantum vs. Shengda Mining Co | Luenmei Quantum vs. Pengxin International Mining |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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