Correlation Between AUPU Home and Liuzhou Chemical
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By analyzing existing cross correlation between AUPU Home Style and Liuzhou Chemical Industry, you can compare the effects of market volatilities on AUPU Home and Liuzhou Chemical 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 Liuzhou Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of AUPU Home and Liuzhou Chemical.
Diversification Opportunities for AUPU Home and Liuzhou Chemical
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between AUPU and Liuzhou is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding AUPU Home Style and Liuzhou Chemical Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liuzhou Chemical Industry 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 Liuzhou Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liuzhou Chemical Industry has no effect on the direction of AUPU Home i.e., AUPU Home and Liuzhou Chemical go up and down completely randomly.
Pair Corralation between AUPU Home and Liuzhou Chemical
Assuming the 90 days trading horizon AUPU Home Style is expected to generate 0.93 times more return on investment than Liuzhou Chemical. However, AUPU Home Style is 1.07 times less risky than Liuzhou Chemical. It trades about 0.02 of its potential returns per unit of risk. Liuzhou Chemical Industry is currently generating about 0.0 per unit of risk. If you would invest 993.00 in AUPU Home Style on October 11, 2024 and sell it today you would earn a total of 58.00 from holding AUPU Home Style or generate 5.84% 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. Liuzhou Chemical Industry
Performance |
| Timeline |
| AUPU Home Style |
| Liuzhou Chemical Industry |
AUPU Home and Liuzhou Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AUPU Home and Liuzhou Chemical
The main advantage of trading using opposite AUPU Home and Liuzhou Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AUPU Home position performs unexpectedly, Liuzhou Chemical 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 Liuzhou Chemical will offset losses from the drop in Liuzhou Chemical's long position.| AUPU Home vs. Chenzhou Jingui Silver | AUPU Home vs. Shanghai Broadband Technology | AUPU Home vs. Shenzhen AV Display Co | AUPU Home vs. Zhengping RoadBridge Constr |
| Liuzhou Chemical vs. AUPU Home Style | Liuzhou Chemical vs. Oppein Home Group | Liuzhou Chemical vs. Easyhome New Retail | Liuzhou Chemical vs. Ziel Home Furnishing |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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