Correlation Between Western Metal and Lecron Energy
Specify exactly 2 symbols:
By analyzing existing cross correlation between Western Metal Materials and Lecron Energy Saving, you can compare the effects of market volatilities on Western Metal 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 Western Metal with a short position of Lecron Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Metal and Lecron Energy.
Diversification Opportunities for Western Metal and Lecron Energy
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Western and Lecron is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Western Metal Materials 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 Western Metal 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 Western Metal Materials 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 Western Metal i.e., Western Metal and Lecron Energy go up and down completely randomly.
Pair Corralation between Western Metal and Lecron Energy
Assuming the 90 days trading horizon Western Metal Materials is expected to under-perform the Lecron Energy. In addition to that, Western Metal is 1.2 times more volatile than Lecron Energy Saving. It trades about -0.06 of its total potential returns per unit of risk. Lecron Energy Saving is currently generating about -0.05 per unit of volatility. If you would invest 592.00 in Lecron Energy Saving on October 30, 2024 and sell it today you would lose (22.00) from holding Lecron Energy Saving or give up 3.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Metal Materials vs. Lecron Energy Saving
Performance |
| Timeline |
| Western Metal Materials |
| Lecron Energy Saving |
Western Metal and Lecron Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Metal and Lecron Energy
The main advantage of trading using opposite Western Metal and Lecron Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Metal 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.| Western Metal vs. Industrial Bank Co | Western Metal vs. Hangzhou Arcvideo Technology | Western Metal vs. Ningbo Tech Bank Co | Western Metal vs. Citic Guoan Wine |
| Lecron Energy vs. Tederic Machinery Co | Lecron Energy vs. Meinian Onehealth Healthcare | Lecron Energy vs. Guangzhou KDT Machinery | Lecron Energy vs. Shandong Sinoglory Health |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |