Correlation Between GRG Banking and Lepu Medical
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By analyzing existing cross correlation between GRG Banking Equipment and Lepu Medical Tech, you can compare the effects of market volatilities on GRG Banking and Lepu Medical 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 GRG Banking with a short position of Lepu Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRG Banking and Lepu Medical.
Diversification Opportunities for GRG Banking and Lepu Medical
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GRG and Lepu is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding GRG Banking Equipment and Lepu Medical Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lepu Medical Tech and GRG Banking 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 GRG Banking Equipment are associated (or correlated) with Lepu Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lepu Medical Tech has no effect on the direction of GRG Banking i.e., GRG Banking and Lepu Medical go up and down completely randomly.
Pair Corralation between GRG Banking and Lepu Medical
Assuming the 90 days trading horizon GRG Banking Equipment is expected to under-perform the Lepu Medical. In addition to that, GRG Banking is 1.5 times more volatile than Lepu Medical Tech. It trades about -0.16 of its total potential returns per unit of risk. Lepu Medical Tech is currently generating about -0.01 per unit of volatility. If you would invest 1,187 in Lepu Medical Tech on September 29, 2024 and sell it today you would lose (4.00) from holding Lepu Medical Tech or give up 0.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRG Banking Equipment vs. Lepu Medical Tech
Performance |
| Timeline |
| GRG Banking Equipment |
| Lepu Medical Tech |
GRG Banking and Lepu Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRG Banking and Lepu Medical
The main advantage of trading using opposite GRG Banking and Lepu Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRG Banking position performs unexpectedly, Lepu Medical 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 Lepu Medical will offset losses from the drop in Lepu Medical's long position.| GRG Banking vs. Industrial and Commercial | GRG Banking vs. Agricultural Bank of | GRG Banking vs. China Construction Bank | GRG Banking vs. Bank of China |
| Lepu Medical vs. Chongqing Changan Automobile | Lepu Medical vs. Malion New Materials | Lepu Medical vs. Cangzhou Mingzhu Plastic | Lepu Medical vs. Dongfeng Automobile Co |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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