Correlation Between Lutian Machinery and Bus Online
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By analyzing existing cross correlation between Lutian Machinery Co and Bus Online Co, you can compare the effects of market volatilities on Lutian Machinery and Bus Online 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 Bus Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lutian Machinery and Bus Online.
Diversification Opportunities for Lutian Machinery and Bus Online
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lutian and Bus is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Lutian Machinery Co and Bus Online Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bus Online 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 Bus Online. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bus Online has no effect on the direction of Lutian Machinery i.e., Lutian Machinery and Bus Online go up and down completely randomly.
Pair Corralation between Lutian Machinery and Bus Online
Assuming the 90 days trading horizon Lutian Machinery Co is expected to generate 0.62 times more return on investment than Bus Online. However, Lutian Machinery Co is 1.6 times less risky than Bus Online. It trades about -0.01 of its potential returns per unit of risk. Bus Online Co is currently generating about -0.03 per unit of risk. If you would invest 1,852 in Lutian Machinery Co on October 13, 2024 and sell it today you would lose (352.00) from holding Lutian Machinery Co or give up 19.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lutian Machinery Co vs. Bus Online Co
Performance |
| Timeline |
| Lutian Machinery |
| Bus Online |
Lutian Machinery and Bus Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lutian Machinery and Bus Online
The main advantage of trading using opposite Lutian Machinery and Bus Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lutian Machinery position performs unexpectedly, Bus Online 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 Bus Online will offset losses from the drop in Bus Online's long position.| Lutian Machinery vs. Longjian Road Bridge | Lutian Machinery vs. Anshan Senyuan Road | Lutian Machinery vs. Jinhe Biotechnology Co | Lutian Machinery vs. Sichuan Hebang Biotechnology |
| Bus Online vs. Haima Automobile Group | Bus Online vs. Shenzhen Zhongzhuang Construction | Bus Online vs. Anhui Jianghuai Automobile | Bus Online vs. Lutian Machinery Co |
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 Stocks Directory module to find actively traded stocks across global markets.
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