Correlation Between Lutian Machinery and Hangzhou EZVIZ
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By analyzing existing cross correlation between Lutian Machinery Co and Hangzhou EZVIZ Network, you can compare the effects of market volatilities on Lutian Machinery and Hangzhou EZVIZ 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 Hangzhou EZVIZ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lutian Machinery and Hangzhou EZVIZ.
Diversification Opportunities for Lutian Machinery and Hangzhou EZVIZ
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lutian and Hangzhou is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Lutian Machinery Co and Hangzhou EZVIZ Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou EZVIZ Network 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 Hangzhou EZVIZ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou EZVIZ Network has no effect on the direction of Lutian Machinery i.e., Lutian Machinery and Hangzhou EZVIZ go up and down completely randomly.
Pair Corralation between Lutian Machinery and Hangzhou EZVIZ
Assuming the 90 days trading horizon Lutian Machinery Co is expected to generate 1.14 times more return on investment than Hangzhou EZVIZ. However, Lutian Machinery is 1.14 times more volatile than Hangzhou EZVIZ Network. It trades about -0.15 of its potential returns per unit of risk. Hangzhou EZVIZ Network is currently generating about -0.33 per unit of risk. If you would invest 1,587 in Lutian Machinery Co on October 14, 2024 and sell it today you would lose (87.00) from holding Lutian Machinery Co or give up 5.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lutian Machinery Co vs. Hangzhou EZVIZ Network
Performance |
| Timeline |
| Lutian Machinery |
| Hangzhou EZVIZ Network |
Lutian Machinery and Hangzhou EZVIZ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lutian Machinery and Hangzhou EZVIZ
The main advantage of trading using opposite Lutian Machinery and Hangzhou EZVIZ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lutian Machinery position performs unexpectedly, Hangzhou EZVIZ 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 Hangzhou EZVIZ will offset losses from the drop in Hangzhou EZVIZ's long position.| Lutian Machinery vs. Chongqing Shunbo Aluminum | Lutian Machinery vs. Rising Nonferrous Metals | Lutian Machinery vs. Shandong Hongchuang Aluminum | Lutian Machinery vs. Everdisplay Optronics Shanghai |
| Hangzhou EZVIZ vs. Vohringer Home Technology | Hangzhou EZVIZ vs. Xingguang Agricultural Mach | Hangzhou EZVIZ vs. Zhejiang Yinlun Machinery | Hangzhou EZVIZ vs. Markor International Home |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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