Correlation Between Lumia and Zhuhai Bojay
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By analyzing existing cross correlation between Lumia and Zhuhai Bojay Electronics, you can compare the effects of market volatilities on Lumia and Zhuhai Bojay 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 Lumia with a short position of Zhuhai Bojay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lumia and Zhuhai Bojay.
Diversification Opportunities for Lumia and Zhuhai Bojay
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Lumia and Zhuhai is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Lumia and Zhuhai Bojay Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhuhai Bojay Electronics and Lumia 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 Lumia are associated (or correlated) with Zhuhai Bojay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhuhai Bojay Electronics has no effect on the direction of Lumia i.e., Lumia and Zhuhai Bojay go up and down completely randomly.
Pair Corralation between Lumia and Zhuhai Bojay
Assuming the 90 days trading horizon Lumia is expected to under-perform the Zhuhai Bojay. In addition to that, Lumia is 1.67 times more volatile than Zhuhai Bojay Electronics. It trades about -0.37 of its total potential returns per unit of risk. Zhuhai Bojay Electronics is currently generating about -0.23 per unit of volatility. If you would invest 3,332 in Zhuhai Bojay Electronics on October 14, 2024 and sell it today you would lose (615.00) from holding Zhuhai Bojay Electronics or give up 18.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lumia vs. Zhuhai Bojay Electronics
Performance |
| Timeline |
| Lumia |
| Zhuhai Bojay Electronics |
Lumia and Zhuhai Bojay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lumia and Zhuhai Bojay
The main advantage of trading using opposite Lumia and Zhuhai Bojay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lumia position performs unexpectedly, Zhuhai Bojay 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 Zhuhai Bojay will offset losses from the drop in Zhuhai Bojay's long position.The idea behind Lumia and Zhuhai Bojay Electronics pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Zhuhai Bojay vs. Guangzhou Jointas Chemical | Zhuhai Bojay vs. Guizhou Chanhen Chemical | Zhuhai Bojay vs. Fiberhome Telecommunication Technologies | Zhuhai Bojay vs. Runjian Communication 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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