Correlation Between Lutian Machinery and Xian International
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By analyzing existing cross correlation between Lutian Machinery Co and Xian International Medical, you can compare the effects of market volatilities on Lutian Machinery and Xian International 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 Lutian Machinery with a short position of Xian International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lutian Machinery and Xian International.
Diversification Opportunities for Lutian Machinery and Xian International
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lutian and Xian is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Lutian Machinery Co and Xian International Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xian International and Lutian Machinery 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 Lutian Machinery Co are associated (or correlated) with Xian International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xian International has no effect on the direction of Lutian Machinery i.e., Lutian Machinery and Xian International go up and down completely randomly.
Pair Corralation between Lutian Machinery and Xian International
Assuming the 90 days trading horizon Lutian Machinery is expected to generate 1.48 times less return on investment than Xian International. But when comparing it to its historical volatility, Lutian Machinery Co is 1.56 times less risky than Xian International. It trades about 0.17 of its potential returns per unit of risk. Xian International Medical is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 445.00 in Xian International Medical on September 12, 2024 and sell it today you would earn a total of 168.00 from holding Xian International Medical or generate 37.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.28% |
| Values | Daily Returns |
Lutian Machinery Co vs. Xian International Medical
Performance |
| Timeline |
| Lutian Machinery |
| Xian International |
Lutian Machinery and Xian International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lutian Machinery and Xian International
The main advantage of trading using opposite Lutian Machinery and Xian International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lutian Machinery position performs unexpectedly, Xian International 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 Xian International will offset losses from the drop in Xian International's long position.| Lutian Machinery vs. Industrial and Commercial | Lutian Machinery vs. Kweichow Moutai Co | Lutian Machinery vs. Agricultural Bank of | Lutian Machinery vs. China Mobile Limited |
| Xian International vs. HaiXin Foods Co | Xian International vs. JiShi Media Co | Xian International vs. Gan Yuan Foods | Xian International vs. Threes Company Media |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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