Correlation Between Everdisplay Optronics and Lutian Machinery
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By analyzing existing cross correlation between Everdisplay Optronics Shanghai and Lutian Machinery Co, you can compare the effects of market volatilities on Everdisplay Optronics and Lutian Machinery 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 Everdisplay Optronics with a short position of Lutian Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Everdisplay Optronics and Lutian Machinery.
Diversification Opportunities for Everdisplay Optronics and Lutian Machinery
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Everdisplay and Lutian is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Everdisplay Optronics Shanghai and Lutian Machinery Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lutian Machinery and Everdisplay Optronics 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 Everdisplay Optronics Shanghai are associated (or correlated) with Lutian Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lutian Machinery has no effect on the direction of Everdisplay Optronics i.e., Everdisplay Optronics and Lutian Machinery go up and down completely randomly.
Pair Corralation between Everdisplay Optronics and Lutian Machinery
Assuming the 90 days trading horizon Everdisplay Optronics Shanghai is expected to under-perform the Lutian Machinery. In addition to that, Everdisplay Optronics is 1.22 times more volatile than Lutian Machinery Co. It trades about -0.1 of its total potential returns per unit of risk. Lutian Machinery Co is currently generating about 0.04 per unit of volatility. If you would invest 1,534 in Lutian Machinery Co on October 28, 2024 and sell it today you would earn a total of 28.00 from holding Lutian Machinery Co or generate 1.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Everdisplay Optronics Shanghai vs. Lutian Machinery Co
Performance |
| Timeline |
| Everdisplay Optronics |
| Lutian Machinery |
Everdisplay Optronics and Lutian Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Everdisplay Optronics and Lutian Machinery
The main advantage of trading using opposite Everdisplay Optronics and Lutian Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Everdisplay Optronics position performs unexpectedly, Lutian Machinery 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 Lutian Machinery will offset losses from the drop in Lutian Machinery's long position.| Everdisplay Optronics vs. Chengdu Kanghua Biological | Everdisplay Optronics vs. Suzhou Novoprotein Scientific | Everdisplay Optronics vs. Aluminum Corp of | Everdisplay Optronics vs. COL Digital Publishing |
| Lutian Machinery vs. PetroChina Co Ltd | Lutian Machinery vs. Industrial and Commercial | Lutian Machinery vs. China Petroleum Chemical | Lutian Machinery vs. China Construction Bank |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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