Correlation Between Lutian Machinery and Cloud Live
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By analyzing existing cross correlation between Lutian Machinery Co and Cloud Live Technology, you can compare the effects of market volatilities on Lutian Machinery and Cloud Live 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 Cloud Live. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lutian Machinery and Cloud Live.
Diversification Opportunities for Lutian Machinery and Cloud Live
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lutian and Cloud is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Lutian Machinery Co and Cloud Live Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cloud Live Technology 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 Cloud Live. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cloud Live Technology has no effect on the direction of Lutian Machinery i.e., Lutian Machinery and Cloud Live go up and down completely randomly.
Pair Corralation between Lutian Machinery and Cloud Live
Assuming the 90 days trading horizon Lutian Machinery Co is expected to generate 0.47 times more return on investment than Cloud Live. However, Lutian Machinery Co is 2.15 times less risky than Cloud Live. It trades about 0.07 of its potential returns per unit of risk. Cloud Live Technology is currently generating about -0.01 per unit of risk. If you would invest 1,394 in Lutian Machinery Co on October 14, 2024 and sell it today you would earn a total of 106.00 from holding Lutian Machinery Co or generate 7.6% 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. Cloud Live Technology
Performance |
| Timeline |
| Lutian Machinery |
| Cloud Live Technology |
Lutian Machinery and Cloud Live Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lutian Machinery and Cloud Live
The main advantage of trading using opposite Lutian Machinery and Cloud Live positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lutian Machinery position performs unexpectedly, Cloud Live 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 Cloud Live will offset losses from the drop in Cloud Live's long position.| Lutian Machinery vs. Chongqing Shunbo Aluminum | Lutian Machinery vs. Rising Nonferrous Metals | Lutian Machinery vs. Shandong Hongchuang Aluminum | Lutian Machinery vs. Everdisplay Optronics Shanghai |
| Cloud Live vs. Postal Savings Bank | Cloud Live vs. Shaanxi Construction Machinery | Cloud Live vs. Allied Machinery Co | Cloud Live 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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