Correlation Between Ningbo Tech and Lecron Energy
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ningbo Tech Bank Co and Lecron Energy Saving, you can compare the effects of market volatilities on Ningbo Tech and Lecron Energy 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 Ningbo Tech with a short position of Lecron Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Tech and Lecron Energy.
Diversification Opportunities for Ningbo Tech and Lecron Energy
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ningbo and Lecron is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Tech Bank Co and Lecron Energy Saving in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lecron Energy Saving and Ningbo Tech 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 Ningbo Tech Bank Co are associated (or correlated) with Lecron Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lecron Energy Saving has no effect on the direction of Ningbo Tech i.e., Ningbo Tech and Lecron Energy go up and down completely randomly.
Pair Corralation between Ningbo Tech and Lecron Energy
Assuming the 90 days trading horizon Ningbo Tech Bank Co is expected to under-perform the Lecron Energy. But the stock apears to be less risky and, when comparing its historical volatility, Ningbo Tech Bank Co is 1.64 times less risky than Lecron Energy. The stock trades about -0.05 of its potential returns per unit of risk. The Lecron Energy Saving is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 1,077 in Lecron Energy Saving on October 16, 2024 and sell it today you would lose (561.00) from holding Lecron Energy Saving or give up 52.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Tech Bank Co vs. Lecron Energy Saving
Performance |
| Timeline |
| Ningbo Tech Bank |
| Lecron Energy Saving |
Ningbo Tech and Lecron Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Tech and Lecron Energy
The main advantage of trading using opposite Ningbo Tech and Lecron Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Tech position performs unexpectedly, Lecron Energy 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 Lecron Energy will offset losses from the drop in Lecron Energy's long position.| Ningbo Tech vs. TianJin 712 Communication | Ningbo Tech vs. Jilin Jlu Communication | Ningbo Tech vs. Western Metal Materials | Ningbo Tech vs. Runjian Communication Co |
| Lecron Energy vs. Songz Automobile Air | Lecron Energy vs. Beijing Kingsoft Office | Lecron Energy vs. Sinomach Automobile Co | Lecron Energy vs. Haima Automobile 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |