Correlation Between Sinosteel Luonai and Tianjin LVYIN
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By analyzing existing cross correlation between Sinosteel Luonai Materials and Tianjin LVYIN Landscape, you can compare the effects of market volatilities on Sinosteel Luonai and Tianjin LVYIN 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 Sinosteel Luonai with a short position of Tianjin LVYIN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinosteel Luonai and Tianjin LVYIN.
Diversification Opportunities for Sinosteel Luonai and Tianjin LVYIN
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sinosteel and Tianjin is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Sinosteel Luonai Materials and Tianjin LVYIN Landscape in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin LVYIN Landscape and Sinosteel Luonai 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 Sinosteel Luonai Materials are associated (or correlated) with Tianjin LVYIN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin LVYIN Landscape has no effect on the direction of Sinosteel Luonai i.e., Sinosteel Luonai and Tianjin LVYIN go up and down completely randomly.
Pair Corralation between Sinosteel Luonai and Tianjin LVYIN
Assuming the 90 days trading horizon Sinosteel Luonai Materials is expected to generate 0.42 times more return on investment than Tianjin LVYIN. However, Sinosteel Luonai Materials is 2.4 times less risky than Tianjin LVYIN. It trades about -0.54 of its potential returns per unit of risk. Tianjin LVYIN Landscape is currently generating about -0.26 per unit of risk. If you would invest 430.00 in Sinosteel Luonai Materials on October 14, 2024 and sell it today you would lose (72.00) from holding Sinosteel Luonai Materials or give up 16.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinosteel Luonai Materials vs. Tianjin LVYIN Landscape
Performance |
| Timeline |
| Sinosteel Luonai Mat |
| Tianjin LVYIN Landscape |
Sinosteel Luonai and Tianjin LVYIN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinosteel Luonai and Tianjin LVYIN
The main advantage of trading using opposite Sinosteel Luonai and Tianjin LVYIN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinosteel Luonai position performs unexpectedly, Tianjin LVYIN 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 Tianjin LVYIN will offset losses from the drop in Tianjin LVYIN's long position.| Sinosteel Luonai vs. Jiangsu Yueda Investment | Sinosteel Luonai vs. Hubei Geoway Investment | Sinosteel Luonai vs. StarPower Semiconductor | Sinosteel Luonai vs. Harbin Hatou Investment |
| Tianjin LVYIN vs. CSSC Offshore Marine | Tianjin LVYIN vs. Guangxi Wuzhou Communications | Tianjin LVYIN vs. State Grid InformationCommunication | Tianjin LVYIN vs. Bomesc Offshore Engineering |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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