Correlation Between Lutian Machinery and Jinhui Mining
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By analyzing existing cross correlation between Lutian Machinery Co and Jinhui Mining Co, you can compare the effects of market volatilities on Lutian Machinery and Jinhui Mining 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 Jinhui Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lutian Machinery and Jinhui Mining.
Diversification Opportunities for Lutian Machinery and Jinhui Mining
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Lutian and Jinhui is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Lutian Machinery Co and Jinhui Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhui Mining 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 Jinhui Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinhui Mining has no effect on the direction of Lutian Machinery i.e., Lutian Machinery and Jinhui Mining go up and down completely randomly.
Pair Corralation between Lutian Machinery and Jinhui Mining
Assuming the 90 days trading horizon Lutian Machinery Co is expected to generate 1.0 times more return on investment than Jinhui Mining. However, Lutian Machinery is 1.0 times more volatile than Jinhui Mining Co. It trades about 0.07 of its potential returns per unit of risk. Jinhui Mining Co is currently generating about -0.07 per unit of risk. If you would invest 1,336 in Lutian Machinery Co on October 30, 2024 and sell it today you would earn a total of 247.00 from holding Lutian Machinery Co or generate 18.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lutian Machinery Co vs. Jinhui Mining Co
Performance |
| Timeline |
| Lutian Machinery |
| Jinhui Mining |
Lutian Machinery and Jinhui Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lutian Machinery and Jinhui Mining
The main advantage of trading using opposite Lutian Machinery and Jinhui Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lutian Machinery position performs unexpectedly, Jinhui Mining 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 Jinhui Mining will offset losses from the drop in Jinhui Mining's long position.| Lutian Machinery vs. CSSC Offshore Marine | Lutian Machinery vs. Dazhong Transportation Group | Lutian Machinery vs. Road Environment Technology | Lutian Machinery vs. China Sports Industry |
| Jinhui Mining vs. Ningbo Homelink Eco iTech | Jinhui Mining vs. Beijing Mainstreets Investment | Jinhui Mining vs. Jiangsu Yueda Investment | Jinhui Mining vs. Ziel Home Furnishing |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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