Correlation Between AUPU Home and Luolai Home
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By analyzing existing cross correlation between AUPU Home Style and Luolai Home Textile, you can compare the effects of market volatilities on AUPU Home and Luolai 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 AUPU Home with a short position of Luolai Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of AUPU Home and Luolai Home.
Diversification Opportunities for AUPU Home and Luolai Home
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between AUPU and Luolai is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding AUPU Home Style and Luolai Home Textile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luolai Home Textile and AUPU Home 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 AUPU Home Style are associated (or correlated) with Luolai Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luolai Home Textile has no effect on the direction of AUPU Home i.e., AUPU Home and Luolai Home go up and down completely randomly.
Pair Corralation between AUPU Home and Luolai Home
Assuming the 90 days trading horizon AUPU Home is expected to generate 1.09 times less return on investment than Luolai Home. But when comparing it to its historical volatility, AUPU Home Style is 1.07 times less risky than Luolai Home. It trades about 0.03 of its potential returns per unit of risk. Luolai Home Textile is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 813.00 in Luolai Home Textile on September 3, 2024 and sell it today you would earn a total of 54.00 from holding Luolai Home Textile or generate 6.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
AUPU Home Style vs. Luolai Home Textile
Performance |
| Timeline |
| AUPU Home Style |
| Luolai Home Textile |
AUPU Home and Luolai Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AUPU Home and Luolai Home
The main advantage of trading using opposite AUPU Home and Luolai Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AUPU Home position performs unexpectedly, Luolai 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 Luolai Home will offset losses from the drop in Luolai Home's long position.| AUPU Home vs. PetroChina Co Ltd | AUPU Home vs. China Mobile Limited | AUPU Home vs. Industrial and Commercial | AUPU Home vs. China Life Insurance |
| Luolai Home vs. PetroChina Co Ltd | Luolai Home vs. China Mobile Limited | Luolai Home vs. Industrial and Commercial | Luolai Home vs. China Life Insurance |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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