Correlation Between LianChuang Electronic and Nsfocus Information
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By analyzing existing cross correlation between LianChuang Electronic Technology and Nsfocus Information Technology, you can compare the effects of market volatilities on LianChuang Electronic and Nsfocus Information 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 Nsfocus Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of LianChuang Electronic and Nsfocus Information.
Diversification Opportunities for LianChuang Electronic and Nsfocus Information
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between LianChuang and Nsfocus is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding LianChuang Electronic Technolo and Nsfocus Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nsfocus Information 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 Nsfocus Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nsfocus Information has no effect on the direction of LianChuang Electronic i.e., LianChuang Electronic and Nsfocus Information go up and down completely randomly.
Pair Corralation between LianChuang Electronic and Nsfocus Information
Assuming the 90 days trading horizon LianChuang Electronic is expected to generate 2.82 times less return on investment than Nsfocus Information. In addition to that, LianChuang Electronic is 1.12 times more volatile than Nsfocus Information Technology. It trades about 0.08 of its total potential returns per unit of risk. Nsfocus Information Technology is currently generating about 0.26 per unit of volatility. If you would invest 645.00 in Nsfocus Information Technology on November 6, 2024 and sell it today you would earn a total of 64.00 from holding Nsfocus Information Technology or generate 9.92% 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. Nsfocus Information Technology
Performance |
| Timeline |
| LianChuang Electronic |
| Nsfocus Information |
LianChuang Electronic and Nsfocus Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LianChuang Electronic and Nsfocus Information
The main advantage of trading using opposite LianChuang Electronic and Nsfocus Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LianChuang Electronic position performs unexpectedly, Nsfocus Information 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 Nsfocus Information will offset losses from the drop in Nsfocus Information's long position.| LianChuang Electronic vs. Eyebright Medical Technology | LianChuang Electronic vs. Montage Technology Co | LianChuang Electronic vs. Dhc Software Co | LianChuang Electronic vs. Soyea Technology Co |
| Nsfocus Information vs. Hua Hong Semiconductor | Nsfocus Information vs. Will Semiconductor Co | Nsfocus Information vs. Hunan Investment Group | Nsfocus Information vs. Henan Shuanghui Investment |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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