Correlation Between Lutian Machinery and Cinda Securities
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By analyzing existing cross correlation between Lutian Machinery Co and Cinda Securities Co, you can compare the effects of market volatilities on Lutian Machinery and Cinda Securities 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 Cinda Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lutian Machinery and Cinda Securities.
Diversification Opportunities for Lutian Machinery and Cinda Securities
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Lutian and Cinda is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Lutian Machinery Co and Cinda Securities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cinda Securities 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 Cinda Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cinda Securities has no effect on the direction of Lutian Machinery i.e., Lutian Machinery and Cinda Securities go up and down completely randomly.
Pair Corralation between Lutian Machinery and Cinda Securities
Assuming the 90 days trading horizon Lutian Machinery Co is expected to under-perform the Cinda Securities. But the stock apears to be less risky and, when comparing its historical volatility, Lutian Machinery Co is 1.6 times less risky than Cinda Securities. The stock trades about 0.0 of its potential returns per unit of risk. The Cinda Securities Co is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,179 in Cinda Securities Co on October 11, 2024 and sell it today you would earn a total of 212.00 from holding Cinda Securities Co or generate 17.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.37% |
| Values | Daily Returns |
Lutian Machinery Co vs. Cinda Securities Co
Performance |
| Timeline |
| Lutian Machinery |
| Cinda Securities |
Lutian Machinery and Cinda Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lutian Machinery and Cinda Securities
The main advantage of trading using opposite Lutian Machinery and Cinda Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lutian Machinery position performs unexpectedly, Cinda Securities 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 Cinda Securities will offset losses from the drop in Cinda Securities' long position.| Lutian Machinery vs. Guangzhou KingTeller Technology | Lutian Machinery vs. Cabio Biotech Wuhan | Lutian Machinery vs. Holitech Technology Co | Lutian Machinery vs. Bangyan Technology Co |
| Cinda Securities vs. Xingguang Agricultural Mach | Cinda Securities vs. Hongrun Construction Group | Cinda Securities vs. Qijing Machinery | Cinda Securities 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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