Correlation Between Lutian Machinery and Jiangsu Yanghe
Specify exactly 2 symbols:
By analyzing existing cross correlation between Lutian Machinery Co and Jiangsu Yanghe Brewery, you can compare the effects of market volatilities on Lutian Machinery and Jiangsu Yanghe 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 Jiangsu Yanghe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lutian Machinery and Jiangsu Yanghe.
Diversification Opportunities for Lutian Machinery and Jiangsu Yanghe
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lutian and Jiangsu is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Lutian Machinery Co and Jiangsu Yanghe Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yanghe Brewery 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 Jiangsu Yanghe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yanghe Brewery has no effect on the direction of Lutian Machinery i.e., Lutian Machinery and Jiangsu Yanghe go up and down completely randomly.
Pair Corralation between Lutian Machinery and Jiangsu Yanghe
Assuming the 90 days trading horizon Lutian Machinery Co is expected to generate 0.93 times more return on investment than Jiangsu Yanghe. However, Lutian Machinery Co is 1.08 times less risky than Jiangsu Yanghe. It trades about 0.05 of its potential returns per unit of risk. Jiangsu Yanghe Brewery is currently generating about 0.0 per unit of risk. If you would invest 1,403 in Lutian Machinery Co on September 2, 2024 and sell it today you would earn a total of 160.00 from holding Lutian Machinery Co or generate 11.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lutian Machinery Co vs. Jiangsu Yanghe Brewery
Performance |
| Timeline |
| Lutian Machinery |
| Jiangsu Yanghe Brewery |
Lutian Machinery and Jiangsu Yanghe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lutian Machinery and Jiangsu Yanghe
The main advantage of trading using opposite Lutian Machinery and Jiangsu Yanghe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lutian Machinery position performs unexpectedly, Jiangsu Yanghe 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 Jiangsu Yanghe will offset losses from the drop in Jiangsu Yanghe's long position.| Lutian Machinery vs. Hangzhou Gaoxin Rubber | Lutian Machinery vs. Chengtun Mining Group | Lutian Machinery vs. Eastern Air Logistics | Lutian Machinery vs. Suzhou Xingye Material |
| Jiangsu Yanghe vs. China Petroleum Chemical | Jiangsu Yanghe vs. PetroChina Co Ltd | Jiangsu Yanghe vs. China State Construction | Jiangsu Yanghe vs. China Railway Group |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |