Correlation Between Chahua Modern and Lutian Machinery
Specify exactly 2 symbols:
By analyzing existing cross correlation between Chahua Modern Housewares and Lutian Machinery Co, you can compare the effects of market volatilities on Chahua Modern and Lutian Machinery 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 Chahua Modern with a short position of Lutian Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chahua Modern and Lutian Machinery.
Diversification Opportunities for Chahua Modern and Lutian Machinery
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chahua and Lutian is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Chahua Modern Housewares and Lutian Machinery Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lutian Machinery and Chahua Modern 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 Chahua Modern Housewares are associated (or correlated) with Lutian Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lutian Machinery has no effect on the direction of Chahua Modern i.e., Chahua Modern and Lutian Machinery go up and down completely randomly.
Pair Corralation between Chahua Modern and Lutian Machinery
Assuming the 90 days trading horizon Chahua Modern Housewares is expected to under-perform the Lutian Machinery. In addition to that, Chahua Modern is 2.25 times more volatile than Lutian Machinery Co. It trades about -0.05 of its total potential returns per unit of risk. Lutian Machinery Co is currently generating about 0.09 per unit of volatility. If you would invest 1,540 in Lutian Machinery Co on September 13, 2024 and sell it today you would earn a total of 50.00 from holding Lutian Machinery Co or generate 3.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chahua Modern Housewares vs. Lutian Machinery Co
Performance |
| Timeline |
| Chahua Modern Housewares |
| Lutian Machinery |
Chahua Modern and Lutian Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chahua Modern and Lutian Machinery
The main advantage of trading using opposite Chahua Modern and Lutian Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chahua Modern position performs unexpectedly, Lutian Machinery 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 Lutian Machinery will offset losses from the drop in Lutian Machinery's long position.| Chahua Modern vs. Agricultural Bank of | Chahua Modern vs. Industrial and Commercial | Chahua Modern vs. Bank of China | Chahua Modern vs. PetroChina Co Ltd |
| Lutian Machinery vs. Industrial and Commercial | Lutian Machinery vs. Kweichow Moutai Co | Lutian Machinery vs. Agricultural Bank of | Lutian Machinery vs. China Mobile Limited |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |