Correlation Between LianChuang Electronic and Guangzhou Fangbang
Specify exactly 2 symbols:
By analyzing existing cross correlation between LianChuang Electronic Technology and Guangzhou Fangbang Electronics, you can compare the effects of market volatilities on LianChuang Electronic and Guangzhou Fangbang 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 Guangzhou Fangbang. Check out your portfolio center. Please also check ongoing floating volatility patterns of LianChuang Electronic and Guangzhou Fangbang.
Diversification Opportunities for LianChuang Electronic and Guangzhou Fangbang
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between LianChuang and Guangzhou is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding LianChuang Electronic Technolo and Guangzhou Fangbang Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Fangbang 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 Guangzhou Fangbang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Fangbang has no effect on the direction of LianChuang Electronic i.e., LianChuang Electronic and Guangzhou Fangbang go up and down completely randomly.
Pair Corralation between LianChuang Electronic and Guangzhou Fangbang
Assuming the 90 days trading horizon LianChuang Electronic Technology is expected to generate 1.01 times more return on investment than Guangzhou Fangbang. However, LianChuang Electronic is 1.01 times more volatile than Guangzhou Fangbang Electronics. It trades about 0.09 of its potential returns per unit of risk. Guangzhou Fangbang Electronics is currently generating about 0.05 per unit of risk. If you would invest 668.00 in LianChuang Electronic Technology on September 27, 2024 and sell it today you would earn a total of 307.00 from holding LianChuang Electronic Technology or generate 45.96% 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. Guangzhou Fangbang Electronics
Performance |
| Timeline |
| LianChuang Electronic |
| Guangzhou Fangbang |
LianChuang Electronic and Guangzhou Fangbang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LianChuang Electronic and Guangzhou Fangbang
The main advantage of trading using opposite LianChuang Electronic and Guangzhou Fangbang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LianChuang Electronic position performs unexpectedly, Guangzhou Fangbang 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 Guangzhou Fangbang will offset losses from the drop in Guangzhou Fangbang's long position.| LianChuang Electronic vs. GRG Banking Equipment | LianChuang Electronic vs. NBTM New Materials | LianChuang Electronic vs. Jinhui Liquor Co | LianChuang Electronic vs. Orinko Advanced Plastics |
| Guangzhou Fangbang vs. Industrial and Commercial | Guangzhou Fangbang vs. China Construction Bank | Guangzhou Fangbang vs. Agricultural Bank of | Guangzhou Fangbang 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.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |