Correlation Between Lianhe Chemical and Unisplendour Corp
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By analyzing existing cross correlation between Lianhe Chemical Technology and Unisplendour Corp, you can compare the effects of market volatilities on Lianhe Chemical and Unisplendour Corp 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 Lianhe Chemical with a short position of Unisplendour Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lianhe Chemical and Unisplendour Corp.
Diversification Opportunities for Lianhe Chemical and Unisplendour Corp
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lianhe and Unisplendour is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Lianhe Chemical Technology and Unisplendour Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unisplendour Corp and Lianhe Chemical 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 Lianhe Chemical Technology are associated (or correlated) with Unisplendour Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unisplendour Corp has no effect on the direction of Lianhe Chemical i.e., Lianhe Chemical and Unisplendour Corp go up and down completely randomly.
Pair Corralation between Lianhe Chemical and Unisplendour Corp
Assuming the 90 days trading horizon Lianhe Chemical Technology is expected to generate 0.59 times more return on investment than Unisplendour Corp. However, Lianhe Chemical Technology is 1.68 times less risky than Unisplendour Corp. It trades about 0.01 of its potential returns per unit of risk. Unisplendour Corp is currently generating about 0.0 per unit of risk. If you would invest 600.00 in Lianhe Chemical Technology on August 28, 2024 and sell it today you would earn a total of 1.00 from holding Lianhe Chemical Technology or generate 0.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lianhe Chemical Technology vs. Unisplendour Corp
Performance |
| Timeline |
| Lianhe Chemical Tech |
| Unisplendour Corp |
Lianhe Chemical and Unisplendour Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lianhe Chemical and Unisplendour Corp
The main advantage of trading using opposite Lianhe Chemical and Unisplendour Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lianhe Chemical position performs unexpectedly, Unisplendour Corp 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 Unisplendour Corp will offset losses from the drop in Unisplendour Corp's long position.| Lianhe Chemical vs. Zijin Mining Group | Lianhe Chemical vs. Baoshan Iron Steel | Lianhe Chemical vs. Shandong Gold Mining | Lianhe Chemical vs. Rongsheng Petrochemical Co |
| Unisplendour Corp vs. BYD Co Ltd | Unisplendour Corp vs. China Mobile Limited | Unisplendour Corp vs. Agricultural Bank of | Unisplendour Corp vs. Industrial and Commercial |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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