Correlation Between Lutian Machinery and Advanced Micro
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By analyzing existing cross correlation between Lutian Machinery Co and Advanced Micro Fabrication, you can compare the effects of market volatilities on Lutian Machinery and Advanced Micro 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 Advanced Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lutian Machinery and Advanced Micro.
Diversification Opportunities for Lutian Machinery and Advanced Micro
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lutian and Advanced is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Lutian Machinery Co and Advanced Micro Fabrication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Micro Fabri 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 Advanced Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Micro Fabri has no effect on the direction of Lutian Machinery i.e., Lutian Machinery and Advanced Micro go up and down completely randomly.
Pair Corralation between Lutian Machinery and Advanced Micro
Assuming the 90 days trading horizon Lutian Machinery is expected to generate 666.33 times less return on investment than Advanced Micro. But when comparing it to its historical volatility, Lutian Machinery Co is 1.56 times less risky than Advanced Micro. It trades about 0.0 of its potential returns per unit of risk. Advanced Micro Fabrication is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 10,135 in Advanced Micro Fabrication on August 26, 2024 and sell it today you would earn a total of 10,811 from holding Advanced Micro Fabrication or generate 106.67% 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. Advanced Micro Fabrication
Performance |
| Timeline |
| Lutian Machinery |
| Advanced Micro Fabri |
Lutian Machinery and Advanced Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lutian Machinery and Advanced Micro
The main advantage of trading using opposite Lutian Machinery and Advanced Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lutian Machinery position performs unexpectedly, Advanced Micro 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 Advanced Micro will offset losses from the drop in Advanced Micro's long position.| Lutian Machinery vs. Biwin Storage Technology | Lutian Machinery vs. PetroChina Co Ltd | Lutian Machinery vs. Industrial and Commercial | Lutian Machinery vs. China Construction Bank |
| Advanced Micro vs. Wuhan Yangtze Communication | Advanced Micro vs. Tongyu Communication | Advanced Micro vs. Youyou Foods Co | Advanced Micro vs. Allwin Telecommunication 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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