Correlation Between Lutian Machinery and Shanghai Jin
Specify exactly 2 symbols:
By analyzing existing cross correlation between Lutian Machinery Co and Shanghai Jin Jiang, you can compare the effects of market volatilities on Lutian Machinery and Shanghai Jin 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 Shanghai Jin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lutian Machinery and Shanghai Jin.
Diversification Opportunities for Lutian Machinery and Shanghai Jin
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lutian and Shanghai is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Lutian Machinery Co and Shanghai Jin Jiang in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Jin Jiang 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 Shanghai Jin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Jin Jiang has no effect on the direction of Lutian Machinery i.e., Lutian Machinery and Shanghai Jin go up and down completely randomly.
Pair Corralation between Lutian Machinery and Shanghai Jin
Assuming the 90 days trading horizon Lutian Machinery Co is expected to generate 0.83 times more return on investment than Shanghai Jin. However, Lutian Machinery Co is 1.2 times less risky than Shanghai Jin. It trades about 0.02 of its potential returns per unit of risk. Shanghai Jin Jiang is currently generating about -0.01 per unit of risk. If you would invest 1,439 in Lutian Machinery Co on August 27, 2024 and sell it today you would earn a total of 81.00 from holding Lutian Machinery Co or generate 5.63% 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. Shanghai Jin Jiang
Performance |
| Timeline |
| Lutian Machinery |
| Shanghai Jin Jiang |
Lutian Machinery and Shanghai Jin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lutian Machinery and Shanghai Jin
The main advantage of trading using opposite Lutian Machinery and Shanghai Jin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lutian Machinery position performs unexpectedly, Shanghai Jin 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 Shanghai Jin will offset losses from the drop in Shanghai Jin's long position.| Lutian Machinery vs. Biwin Storage Technology | Lutian Machinery vs. PetroChina Co Ltd | Lutian Machinery vs. Industrial and Commercial | Lutian Machinery vs. China Construction Bank |
| Shanghai Jin vs. RoadMain T Co | Shanghai Jin vs. Dhc Software Co | Shanghai Jin vs. Broadex Technologies Co | Shanghai Jin vs. Northking Information Technology |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |