Correlation Between Luyin Investment and Guangdong Jinma
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By analyzing existing cross correlation between Luyin Investment Group and Guangdong Jinma Entertainment, you can compare the effects of market volatilities on Luyin Investment and Guangdong Jinma 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 Luyin Investment with a short position of Guangdong Jinma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luyin Investment and Guangdong Jinma.
Diversification Opportunities for Luyin Investment and Guangdong Jinma
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Luyin and Guangdong is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Luyin Investment Group and Guangdong Jinma Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Jinma Ente and Luyin Investment 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 Luyin Investment Group are associated (or correlated) with Guangdong Jinma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Jinma Ente has no effect on the direction of Luyin Investment i.e., Luyin Investment and Guangdong Jinma go up and down completely randomly.
Pair Corralation between Luyin Investment and Guangdong Jinma
Assuming the 90 days trading horizon Luyin Investment is expected to generate 1.82 times less return on investment than Guangdong Jinma. But when comparing it to its historical volatility, Luyin Investment Group is 1.93 times less risky than Guangdong Jinma. It trades about 0.11 of its potential returns per unit of risk. Guangdong Jinma Entertainment is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,253 in Guangdong Jinma Entertainment on September 26, 2024 and sell it today you would earn a total of 300.00 from holding Guangdong Jinma Entertainment or generate 23.94% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Luyin Investment Group vs. Guangdong Jinma Entertainment
Performance |
Timeline |
Luyin Investment |
Guangdong Jinma Ente |
Luyin Investment and Guangdong Jinma Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Luyin Investment and Guangdong Jinma
The main advantage of trading using opposite Luyin Investment and Guangdong Jinma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luyin Investment position performs unexpectedly, Guangdong Jinma 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 Guangdong Jinma will offset losses from the drop in Guangdong Jinma's long position.Luyin Investment vs. Wanhua Chemical Group | Luyin Investment vs. Shandong Gold Mining | Luyin Investment vs. Rongsheng Petrochemical Co | Luyin Investment vs. Inner Mongolia BaoTou |
Guangdong Jinma vs. Peoples Insurance of | Guangdong Jinma vs. Olympic Circuit Technology | Guangdong Jinma vs. Dymatic Chemicals | Guangdong Jinma vs. Northking Information Technology |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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