Correlation Between Lutian Machinery and Guizhou BroadcastingTV
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By analyzing existing cross correlation between Lutian Machinery Co and Guizhou BroadcastingTV Info, you can compare the effects of market volatilities on Lutian Machinery and Guizhou BroadcastingTV 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 Guizhou BroadcastingTV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lutian Machinery and Guizhou BroadcastingTV.
Diversification Opportunities for Lutian Machinery and Guizhou BroadcastingTV
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lutian and Guizhou is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Lutian Machinery Co and Guizhou BroadcastingTV Info in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guizhou BroadcastingTV 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 Guizhou BroadcastingTV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guizhou BroadcastingTV has no effect on the direction of Lutian Machinery i.e., Lutian Machinery and Guizhou BroadcastingTV go up and down completely randomly.
Pair Corralation between Lutian Machinery and Guizhou BroadcastingTV
Assuming the 90 days trading horizon Lutian Machinery Co is expected to generate 0.62 times more return on investment than Guizhou BroadcastingTV. However, Lutian Machinery Co is 1.61 times less risky than Guizhou BroadcastingTV. It trades about 0.03 of its potential returns per unit of risk. Guizhou BroadcastingTV Info is currently generating about -0.31 per unit of risk. If you would invest 1,530 in Lutian Machinery Co on October 20, 2024 and sell it today you would earn a total of 15.00 from holding Lutian Machinery Co or generate 0.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lutian Machinery Co vs. Guizhou BroadcastingTV Info
Performance |
| Timeline |
| Lutian Machinery |
| Guizhou BroadcastingTV |
Lutian Machinery and Guizhou BroadcastingTV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lutian Machinery and Guizhou BroadcastingTV
The main advantage of trading using opposite Lutian Machinery and Guizhou BroadcastingTV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lutian Machinery position performs unexpectedly, Guizhou BroadcastingTV 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 Guizhou BroadcastingTV will offset losses from the drop in Guizhou BroadcastingTV's long position.| Lutian Machinery vs. Chengdu B ray Media | Lutian Machinery vs. Lander Sports Development | Lutian Machinery vs. Guangdong Jinma Entertainment | Lutian Machinery vs. AVCON Information Tech |
| Guizhou BroadcastingTV vs. Soyea Technology Co | Guizhou BroadcastingTV vs. Fuzhou Rockchip Electronics | Guizhou BroadcastingTV vs. Kingsignal Technology Co | Guizhou BroadcastingTV vs. Xinya Electronic 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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