Correlation Between Lutian Machinery and Eastroc Beverage
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By analyzing existing cross correlation between Lutian Machinery Co and Eastroc Beverage Group, you can compare the effects of market volatilities on Lutian Machinery and Eastroc Beverage 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 Eastroc Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lutian Machinery and Eastroc Beverage.
Diversification Opportunities for Lutian Machinery and Eastroc Beverage
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lutian and Eastroc is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Lutian Machinery Co and Eastroc Beverage Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastroc Beverage 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 Eastroc Beverage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastroc Beverage has no effect on the direction of Lutian Machinery i.e., Lutian Machinery and Eastroc Beverage go up and down completely randomly.
Pair Corralation between Lutian Machinery and Eastroc Beverage
Assuming the 90 days trading horizon Lutian Machinery Co is expected to generate 0.61 times more return on investment than Eastroc Beverage. However, Lutian Machinery Co is 1.64 times less risky than Eastroc Beverage. It trades about 0.26 of its potential returns per unit of risk. Eastroc Beverage Group is currently generating about -0.22 per unit of risk. If you would invest 1,557 in Lutian Machinery Co on November 29, 2024 and sell it today you would earn a total of 99.00 from holding Lutian Machinery Co or generate 6.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lutian Machinery Co vs. Eastroc Beverage Group
Performance |
| Timeline |
| Lutian Machinery |
| Eastroc Beverage |
Lutian Machinery and Eastroc Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lutian Machinery and Eastroc Beverage
The main advantage of trading using opposite Lutian Machinery and Eastroc Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lutian Machinery position performs unexpectedly, Eastroc Beverage 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 Eastroc Beverage will offset losses from the drop in Eastroc Beverage's long position.| Lutian Machinery vs. MayAir Technology Co | Lutian Machinery vs. AVIC Fund Management | Lutian Machinery vs. Chengdu Spaceon Electronics | Lutian Machinery vs. Huaxia Fund Management |
| Eastroc Beverage vs. JCHX Mining Management | Eastroc Beverage vs. Chengdu Spaceon Electronics | Eastroc Beverage vs. GreenTech Environmental Co | Eastroc Beverage vs. Goldlok Toys Holdings |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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