Correlation Between LianChuang Electronic and Suofeiya Home
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By analyzing existing cross correlation between LianChuang Electronic Technology and Suofeiya Home Collection, you can compare the effects of market volatilities on LianChuang Electronic and Suofeiya Home 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 Suofeiya Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of LianChuang Electronic and Suofeiya Home.
Diversification Opportunities for LianChuang Electronic and Suofeiya Home
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between LianChuang and Suofeiya is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding LianChuang Electronic Technolo and Suofeiya Home Collection in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suofeiya Home Collection 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 Suofeiya Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suofeiya Home Collection has no effect on the direction of LianChuang Electronic i.e., LianChuang Electronic and Suofeiya Home go up and down completely randomly.
Pair Corralation between LianChuang Electronic and Suofeiya Home
Assuming the 90 days trading horizon LianChuang Electronic Technology is expected to generate 1.43 times more return on investment than Suofeiya Home. However, LianChuang Electronic is 1.43 times more volatile than Suofeiya Home Collection. It trades about 0.1 of its potential returns per unit of risk. Suofeiya Home Collection is currently generating about 0.02 per unit of risk. If you would invest 693.00 in LianChuang Electronic Technology on September 3, 2024 and sell it today you would earn a total of 371.00 from holding LianChuang Electronic Technology or generate 53.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
LianChuang Electronic Technolo vs. Suofeiya Home Collection
Performance |
| Timeline |
| LianChuang Electronic |
| Suofeiya Home Collection |
LianChuang Electronic and Suofeiya Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LianChuang Electronic and Suofeiya Home
The main advantage of trading using opposite LianChuang Electronic and Suofeiya Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LianChuang Electronic position performs unexpectedly, Suofeiya Home 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 Suofeiya Home will offset losses from the drop in Suofeiya Home's long position.| LianChuang Electronic vs. Agricultural Bank of | LianChuang Electronic vs. China Construction Bank | LianChuang Electronic vs. Postal Savings Bank | LianChuang Electronic vs. Bank of Communications |
| Suofeiya Home vs. PetroChina Co Ltd | Suofeiya Home vs. China Mobile Limited | Suofeiya Home vs. Industrial and Commercial | Suofeiya Home vs. China Life Insurance |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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