Correlation Between LianChuang Electronic and Leaguer Shenzhen
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By analyzing existing cross correlation between LianChuang Electronic Technology and Leaguer Shenzhen MicroElectronics, you can compare the effects of market volatilities on LianChuang Electronic and Leaguer Shenzhen 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 Leaguer Shenzhen. Check out your portfolio center. Please also check ongoing floating volatility patterns of LianChuang Electronic and Leaguer Shenzhen.
Diversification Opportunities for LianChuang Electronic and Leaguer Shenzhen
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between LianChuang and Leaguer is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding LianChuang Electronic Technolo and Leaguer Shenzhen MicroElectron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leaguer Shenzhen Mic 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 Leaguer Shenzhen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leaguer Shenzhen Mic has no effect on the direction of LianChuang Electronic i.e., LianChuang Electronic and Leaguer Shenzhen go up and down completely randomly.
Pair Corralation between LianChuang Electronic and Leaguer Shenzhen
Assuming the 90 days trading horizon LianChuang Electronic Technology is expected to generate 1.04 times more return on investment than Leaguer Shenzhen. However, LianChuang Electronic is 1.04 times more volatile than Leaguer Shenzhen MicroElectronics. It trades about 0.03 of its potential returns per unit of risk. Leaguer Shenzhen MicroElectronics is currently generating about 0.01 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. Leaguer Shenzhen MicroElectron
Performance |
| Timeline |
| LianChuang Electronic |
| Leaguer Shenzhen Mic |
LianChuang Electronic and Leaguer Shenzhen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LianChuang Electronic and Leaguer Shenzhen
The main advantage of trading using opposite LianChuang Electronic and Leaguer Shenzhen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LianChuang Electronic position performs unexpectedly, Leaguer Shenzhen 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 Leaguer Shenzhen will offset losses from the drop in Leaguer Shenzhen'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 |
| Leaguer Shenzhen vs. Gansu Jiu Steel | Leaguer Shenzhen vs. Shandong Mining Machinery | Leaguer Shenzhen vs. Aba Chemicals Corp | Leaguer Shenzhen vs. BlueFocus Communication Group |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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