Correlation Between 111 and Lufax Holding

Can any of the company-specific risk be diversified away by investing in both 111 and Lufax Holding 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 111 and Lufax Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between 111 Inc and Lufax Holding, you can compare the effects of market volatilities on 111 and Lufax Holding 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 111 with a short position of Lufax Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of 111 and Lufax Holding.

Diversification Opportunities for 111 and Lufax Holding

0.27

Correlation Coefficient

111  Lufax Holding

Modest diversification

The 3 months correlation between 111 and Lufax is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding 111 Inc and Lufax Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lufax Holding and 111 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 111 Inc are associated (or correlated) with Lufax Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lufax Holding has no effect on the direction of 111 i.e., 111 and Lufax Holding go up and down completely randomly.

Pair Corralation between 111 and Lufax Holding

Allowing for the 90-day total investment horizon 111 Inc is expected to under-perform the Lufax Holding. But the stock apears to be less risky and, when comparing its historical volatility, 111 Inc is 1.08 times less risky than Lufax Holding. The stock trades about -0.03 of its potential returns per unit of risk. The Lufax Holding is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  276.00  in Lufax Holding on May 7, 2025 and sell it today you would earn a total of  12.00  from holding Lufax Holding or generate 4.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

111 Inc  vs.  Lufax Holding

111 Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days 111 Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, 111 is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Lufax Holding

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Lufax Holding are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively abnormal basic indicators, Lufax Holding may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with 111 and Lufax Holding

The main advantage of trading using opposite 111 and Lufax Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 111 position performs unexpectedly, Lufax Holding 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 Lufax Holding will offset losses from the drop in Lufax Holding's long position.

The idea behind 111 Inc and Lufax Holding 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.

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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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.