Correlation Between LianChuang Electronic and Geron
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By analyzing existing cross correlation between LianChuang Electronic Technology and Geron Co, you can compare the effects of market volatilities on LianChuang Electronic and Geron 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 Geron. Check out your portfolio center. Please also check ongoing floating volatility patterns of LianChuang Electronic and Geron.
Diversification Opportunities for LianChuang Electronic and Geron
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between LianChuang and Geron is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding LianChuang Electronic Technolo and Geron Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Geron 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 Geron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Geron has no effect on the direction of LianChuang Electronic i.e., LianChuang Electronic and Geron go up and down completely randomly.
Pair Corralation between LianChuang Electronic and Geron
Assuming the 90 days trading horizon LianChuang Electronic Technology is expected to generate 1.22 times more return on investment than Geron. However, LianChuang Electronic is 1.22 times more volatile than Geron Co. It trades about 0.03 of its potential returns per unit of risk. Geron Co is currently generating about 0.03 per unit of risk. If you would invest 989.00 in LianChuang Electronic Technology on September 12, 2024 and sell it today you would earn a total of 103.00 from holding LianChuang Electronic Technology or generate 10.41% 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. Geron Co
Performance |
| Timeline |
| LianChuang Electronic |
| Geron |
LianChuang Electronic and Geron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LianChuang Electronic and Geron
The main advantage of trading using opposite LianChuang Electronic and Geron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LianChuang Electronic position performs unexpectedly, Geron 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 Geron will offset losses from the drop in Geron's long position.| LianChuang Electronic vs. Gansu Jiu Steel | LianChuang Electronic vs. Shandong Mining Machinery | LianChuang Electronic vs. Aba Chemicals Corp | LianChuang Electronic vs. BlueFocus Communication Group |
| Geron vs. LianChuang Electronic Technology | Geron vs. Semiconductor Manufacturing Electronics | Geron vs. Fujian Newland Computer | Geron vs. Integrated Electronic Systems |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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