Correlation Between Zhejiang HISUN and Luyin Investment
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By analyzing existing cross correlation between Zhejiang HISUN Biomaterials and Luyin Investment Group, you can compare the effects of market volatilities on Zhejiang HISUN and Luyin Investment 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 Zhejiang HISUN with a short position of Luyin Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang HISUN and Luyin Investment.
Diversification Opportunities for Zhejiang HISUN and Luyin Investment
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zhejiang and Luyin is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang HISUN Biomaterials and Luyin Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luyin Investment and Zhejiang HISUN 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 Zhejiang HISUN Biomaterials are associated (or correlated) with Luyin Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luyin Investment has no effect on the direction of Zhejiang HISUN i.e., Zhejiang HISUN and Luyin Investment go up and down completely randomly.
Pair Corralation between Zhejiang HISUN and Luyin Investment
Assuming the 90 days trading horizon Zhejiang HISUN is expected to generate 3.82 times less return on investment than Luyin Investment. But when comparing it to its historical volatility, Zhejiang HISUN Biomaterials is 1.07 times less risky than Luyin Investment. It trades about 0.04 of its potential returns per unit of risk. Luyin Investment Group is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 615.00 in Luyin Investment Group on September 13, 2024 and sell it today you would earn a total of 37.00 from holding Luyin Investment Group or generate 6.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang HISUN Biomaterials vs. Luyin Investment Group
Performance |
| Timeline |
| Zhejiang HISUN Bioma |
| Luyin Investment |
Zhejiang HISUN and Luyin Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang HISUN and Luyin Investment
The main advantage of trading using opposite Zhejiang HISUN and Luyin Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang HISUN position performs unexpectedly, Luyin Investment 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 Luyin Investment will offset losses from the drop in Luyin Investment's long position.| Zhejiang HISUN vs. Lander Sports Development | Zhejiang HISUN vs. Hua Xia Bank | Zhejiang HISUN vs. China World Trade | Zhejiang HISUN vs. Panda Financial Holding |
| Luyin Investment vs. Zijin Mining Group | Luyin Investment vs. Wanhua Chemical Group | Luyin Investment vs. Baoshan Iron Steel | Luyin Investment vs. Shandong Gold Mining |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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