Correlation Between LianChuang Electronic and Integrated Electronic
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By analyzing existing cross correlation between LianChuang Electronic Technology and Integrated Electronic Systems, you can compare the effects of market volatilities on LianChuang Electronic and Integrated Electronic 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 LianChuang Electronic with a short position of Integrated Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of LianChuang Electronic and Integrated Electronic.
Diversification Opportunities for LianChuang Electronic and Integrated Electronic
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between LianChuang and Integrated is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding LianChuang Electronic Technolo and Integrated Electronic Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integrated Electronic and LianChuang Electronic 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 LianChuang Electronic Technology are associated (or correlated) with Integrated Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integrated Electronic has no effect on the direction of LianChuang Electronic i.e., LianChuang Electronic and Integrated Electronic go up and down completely randomly.
Pair Corralation between LianChuang Electronic and Integrated Electronic
Assuming the 90 days trading horizon LianChuang Electronic Technology is expected to generate 0.81 times more return on investment than Integrated Electronic. However, LianChuang Electronic Technology is 1.24 times less risky than Integrated Electronic. It trades about -0.07 of its potential returns per unit of risk. Integrated Electronic Systems is currently generating about -0.11 per unit of risk. If you would invest 992.00 in LianChuang Electronic Technology on October 22, 2024 and sell it today you would lose (43.00) from holding LianChuang Electronic Technology or give up 4.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
LianChuang Electronic Technolo vs. Integrated Electronic Systems
Performance |
| Timeline |
| LianChuang Electronic |
| Integrated Electronic |
LianChuang Electronic and Integrated Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LianChuang Electronic and Integrated Electronic
The main advantage of trading using opposite LianChuang Electronic and Integrated Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LianChuang Electronic position performs unexpectedly, Integrated Electronic 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 Integrated Electronic will offset losses from the drop in Integrated Electronic's long position.| LianChuang Electronic vs. Unisplendour Corp | LianChuang Electronic vs. Dongfeng Automobile Co | LianChuang Electronic vs. Sinomach Automobile Co | LianChuang Electronic vs. Air China Ltd |
| Integrated Electronic vs. Beijing Sanyuan Foods | Integrated Electronic vs. Guangdong Wens Foodstuff | Integrated Electronic vs. Lootom Telcovideo Network | Integrated Electronic vs. Gem Year Industrial Co |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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