Correlation Between Guangdong Investment and LCI Industries
Can any of the company-specific risk be diversified away by investing in both Guangdong Investment and LCI Industries at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Guangdong Investment and LCI Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guangdong Investment Limited and LCI Industries, you can compare the effects of market volatilities on Guangdong Investment and LCI Industries 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 Guangdong Investment with a short position of LCI Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Investment and LCI Industries.
Diversification Opportunities for Guangdong Investment and LCI Industries
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Guangdong and LCI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Investment Limited and LCI Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LCI Industries and Guangdong 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 Guangdong Investment Limited are associated (or correlated) with LCI Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LCI Industries has no effect on the direction of Guangdong Investment i.e., Guangdong Investment and LCI Industries go up and down completely randomly.
Pair Corralation between Guangdong Investment and LCI Industries
If you would invest 10,586 in LCI Industries on September 3, 2025 and sell it today you would earn a total of 1,105 from holding LCI Industries or generate 10.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Guangdong Investment Limited vs. LCI Industries
Performance |
| Timeline |
| Guangdong Investment |
| LCI Industries |
Guangdong Investment and LCI Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Investment and LCI Industries
The main advantage of trading using opposite Guangdong Investment and LCI Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Investment position performs unexpectedly, LCI Industries 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 LCI Industries will offset losses from the drop in LCI Industries' long position.| Guangdong Investment vs. Konoike Transport CoLtd | Guangdong Investment vs. GOME Retail Holdings | Guangdong Investment vs. Arizona Metals Corp | Guangdong Investment vs. National Retail Properties |
| LCI Industries vs. Barrick Mining | LCI Industries vs. US GoldMining Common | LCI Industries vs. Mako Mining Corp | LCI Industries vs. RTG Mining |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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