Correlation Between Lutian Machinery and Oppein Home
Specify exactly 2 symbols:
By analyzing existing cross correlation between Lutian Machinery Co and Oppein Home Group, you can compare the effects of market volatilities on Lutian Machinery and Oppein Home 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 Oppein Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lutian Machinery and Oppein Home.
Diversification Opportunities for Lutian Machinery and Oppein Home
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lutian and Oppein is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Lutian Machinery Co and Oppein Home Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppein Home Group 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 Oppein Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppein Home Group has no effect on the direction of Lutian Machinery i.e., Lutian Machinery and Oppein Home go up and down completely randomly.
Pair Corralation between Lutian Machinery and Oppein Home
Assuming the 90 days trading horizon Lutian Machinery is expected to generate 6.32 times less return on investment than Oppein Home. But when comparing it to its historical volatility, Lutian Machinery Co is 1.55 times less risky than Oppein Home. It trades about 0.04 of its potential returns per unit of risk. Oppein Home Group is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 7,202 in Oppein Home Group on September 14, 2024 and sell it today you would earn a total of 623.00 from holding Oppein Home Group or generate 8.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lutian Machinery Co vs. Oppein Home Group
Performance |
| Timeline |
| Lutian Machinery |
| Oppein Home Group |
Lutian Machinery and Oppein Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lutian Machinery and Oppein Home
The main advantage of trading using opposite Lutian Machinery and Oppein Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lutian Machinery position performs unexpectedly, Oppein Home 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 Oppein Home will offset losses from the drop in Oppein Home's long position.| Lutian Machinery vs. Industrial and Commercial | Lutian Machinery vs. Kweichow Moutai Co | Lutian Machinery vs. Agricultural Bank of | Lutian Machinery vs. China Mobile Limited |
| Oppein Home vs. Lutian Machinery Co | Oppein Home vs. China Longyuan Power | Oppein Home vs. PetroChina Co Ltd | Oppein Home vs. Bank of China |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |