Correlation Between Lushang Property and Vatti Corp
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By analyzing existing cross correlation between Lushang Property Co and Vatti Corp, you can compare the effects of market volatilities on Lushang Property and Vatti Corp 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 Lushang Property with a short position of Vatti Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lushang Property and Vatti Corp.
Diversification Opportunities for Lushang Property and Vatti Corp
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Lushang and Vatti is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Lushang Property Co and Vatti Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vatti Corp and Lushang Property 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 Lushang Property Co are associated (or correlated) with Vatti Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vatti Corp has no effect on the direction of Lushang Property i.e., Lushang Property and Vatti Corp go up and down completely randomly.
Pair Corralation between Lushang Property and Vatti Corp
Assuming the 90 days trading horizon Lushang Property Co is expected to generate 0.75 times more return on investment than Vatti Corp. However, Lushang Property Co is 1.34 times less risky than Vatti Corp. It trades about 0.21 of its potential returns per unit of risk. Vatti Corp is currently generating about 0.02 per unit of risk. If you would invest 686.00 in Lushang Property Co on September 24, 2024 and sell it today you would earn a total of 53.00 from holding Lushang Property Co or generate 7.73% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Lushang Property Co vs. Vatti Corp
Performance |
Timeline |
Lushang Property |
Vatti Corp |
Lushang Property and Vatti Corp Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lushang Property and Vatti Corp
The main advantage of trading using opposite Lushang Property and Vatti Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lushang Property position performs unexpectedly, Vatti Corp 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 Vatti Corp will offset losses from the drop in Vatti Corp's long position.Lushang Property vs. PetroChina Co Ltd | Lushang Property vs. China Mobile Limited | Lushang Property vs. CNOOC Limited | Lushang Property vs. Ping An Insurance |
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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