Correlation Between Threes Company and Lushang Property
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By analyzing existing cross correlation between Threes Company Media and Lushang Property Co, you can compare the effects of market volatilities on Threes Company and Lushang Property 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 Threes Company with a short position of Lushang Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Threes Company and Lushang Property.
Diversification Opportunities for Threes Company and Lushang Property
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Threes and Lushang is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Threes Company Media and Lushang Property Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lushang Property and Threes Company 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 Threes Company Media are associated (or correlated) with Lushang Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lushang Property has no effect on the direction of Threes Company i.e., Threes Company and Lushang Property go up and down completely randomly.
Pair Corralation between Threes Company and Lushang Property
Assuming the 90 days trading horizon Threes Company Media is expected to under-perform the Lushang Property. In addition to that, Threes Company is 1.57 times more volatile than Lushang Property Co. It trades about -0.06 of its total potential returns per unit of risk. Lushang Property Co is currently generating about -0.04 per unit of volatility. If you would invest 1,092 in Lushang Property Co on August 24, 2024 and sell it today you would lose (414.00) from holding Lushang Property Co or give up 37.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Threes Company Media vs. Lushang Property Co
Performance |
| Timeline |
| Threes Company |
| Lushang Property |
Threes Company and Lushang Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Threes Company and Lushang Property
The main advantage of trading using opposite Threes Company and Lushang Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Threes Company position performs unexpectedly, Lushang Property 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 Lushang Property will offset losses from the drop in Lushang Property's long position.| Threes Company vs. Industrial and Commercial | Threes Company vs. Agricultural Bank of | Threes Company vs. China Construction Bank | Threes Company vs. Bank of China |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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