Correlation Between Lumia and Nanning Chemical
Specify exactly 2 symbols:
By analyzing existing cross correlation between Lumia and Nanning Chemical Industry, you can compare the effects of market volatilities on Lumia and Nanning Chemical 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 Nanning Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lumia and Nanning Chemical.
Diversification Opportunities for Lumia and Nanning Chemical
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lumia and Nanning is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Lumia and Nanning Chemical Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanning Chemical Industry 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 Nanning Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanning Chemical Industry has no effect on the direction of Lumia i.e., Lumia and Nanning Chemical go up and down completely randomly.
Pair Corralation between Lumia and Nanning Chemical
Assuming the 90 days trading horizon Lumia is expected to generate 14.58 times more return on investment than Nanning Chemical. However, Lumia is 14.58 times more volatile than Nanning Chemical Industry. It trades about 0.04 of its potential returns per unit of risk. Nanning Chemical Industry is currently generating about 0.02 per unit of risk. If you would invest 0.00 in Lumia on October 27, 2024 and sell it today you would earn a total of 88.00 from holding Lumia or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 93.96% |
| Values | Daily Returns |
Lumia vs. Nanning Chemical Industry
Performance |
| Timeline |
| Lumia |
| Nanning Chemical Industry |
Lumia and Nanning Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lumia and Nanning Chemical
The main advantage of trading using opposite Lumia and Nanning Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lumia position performs unexpectedly, Nanning Chemical 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 Nanning Chemical will offset losses from the drop in Nanning Chemical's long position.The idea behind Lumia and Nanning Chemical Industry 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.| Nanning Chemical vs. China Publishing Media | Nanning Chemical vs. Heilongjiang Publishing Media | Nanning Chemical vs. MayAir Technology Co | Nanning Chemical vs. Thinkingdom Media Group |
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.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |