Correlation Between Inner Mongolia and Luyin Investment
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By analyzing existing cross correlation between Inner Mongolia BaoTou and Luyin Investment Group, you can compare the effects of market volatilities on Inner Mongolia 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 Inner Mongolia with a short position of Luyin Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inner Mongolia and Luyin Investment.
Diversification Opportunities for Inner Mongolia and Luyin Investment
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Inner and Luyin is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Inner Mongolia BaoTou and Luyin Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luyin Investment and Inner Mongolia 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 Inner Mongolia BaoTou 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 Inner Mongolia i.e., Inner Mongolia and Luyin Investment go up and down completely randomly.
Pair Corralation between Inner Mongolia and Luyin Investment
Assuming the 90 days trading horizon Inner Mongolia BaoTou is expected to generate 0.89 times more return on investment than Luyin Investment. However, Inner Mongolia BaoTou is 1.12 times less risky than Luyin Investment. It trades about 0.01 of its potential returns per unit of risk. Luyin Investment Group is currently generating about 0.0 per unit of risk. If you would invest 193.00 in Inner Mongolia BaoTou on September 26, 2024 and sell it today you would lose (1.00) from holding Inner Mongolia BaoTou or give up 0.52% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Inner Mongolia BaoTou vs. Luyin Investment Group
Performance |
Timeline |
Inner Mongolia BaoTou |
Luyin Investment |
Inner Mongolia and Luyin Investment Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Inner Mongolia and Luyin Investment
The main advantage of trading using opposite Inner Mongolia and Luyin Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inner Mongolia 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.Inner Mongolia vs. Wanhua Chemical Group | Inner Mongolia vs. Shandong Gold Mining | Inner Mongolia vs. Rongsheng Petrochemical Co | Inner Mongolia vs. Jiangxi Ganfeng Lithium |
Luyin Investment vs. Wanhua Chemical Group | Luyin Investment vs. Shandong Gold Mining | Luyin Investment vs. Rongsheng Petrochemical Co | Luyin Investment vs. Inner Mongolia BaoTou |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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