Correlation Between Changchun High and Lens Technology
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By analyzing existing cross correlation between Changchun High New and Lens Technology Co, you can compare the effects of market volatilities on Changchun High and Lens Technology 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 Changchun High with a short position of Lens Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun High and Lens Technology.
Diversification Opportunities for Changchun High and Lens Technology
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Changchun and Lens is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Changchun High New and Lens Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lens Technology and Changchun High 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 Changchun High New are associated (or correlated) with Lens Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lens Technology has no effect on the direction of Changchun High i.e., Changchun High and Lens Technology go up and down completely randomly.
Pair Corralation between Changchun High and Lens Technology
Assuming the 90 days trading horizon Changchun High New is expected to under-perform the Lens Technology. But the stock apears to be less risky and, when comparing its historical volatility, Changchun High New is 1.2 times less risky than Lens Technology. The stock trades about -0.04 of its potential returns per unit of risk. The Lens Technology Co is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,043 in Lens Technology Co on September 26, 2024 and sell it today you would earn a total of 1,205 from holding Lens Technology Co or generate 115.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changchun High New vs. Lens Technology Co
Performance |
| Timeline |
| Changchun High New |
| Lens Technology |
Changchun High and Lens Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun High and Lens Technology
The main advantage of trading using opposite Changchun High and Lens Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun High position performs unexpectedly, Lens Technology 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 Lens Technology will offset losses from the drop in Lens Technology's long position.| Changchun High vs. Agricultural Bank of | Changchun High vs. Industrial and Commercial | Changchun High vs. Bank of China | Changchun High vs. China Construction Bank |
| Lens Technology vs. Industrial and Commercial | Lens Technology vs. China Construction Bank | Lens Technology vs. Agricultural Bank of | Lens Technology vs. Bank of China |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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