Correlation Between Lianhe Chemical and Omnijoi Media
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By analyzing existing cross correlation between Lianhe Chemical Technology and Omnijoi Media Corp, you can compare the effects of market volatilities on Lianhe Chemical and Omnijoi Media 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 Omnijoi Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lianhe Chemical and Omnijoi Media.
Diversification Opportunities for Lianhe Chemical and Omnijoi Media
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lianhe and Omnijoi is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Lianhe Chemical Technology and Omnijoi Media Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Omnijoi Media 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 Omnijoi Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Omnijoi Media Corp has no effect on the direction of Lianhe Chemical i.e., Lianhe Chemical and Omnijoi Media go up and down completely randomly.
Pair Corralation between Lianhe Chemical and Omnijoi Media
Assuming the 90 days trading horizon Lianhe Chemical Technology is expected to under-perform the Omnijoi Media. But the stock apears to be less risky and, when comparing its historical volatility, Lianhe Chemical Technology is 1.97 times less risky than Omnijoi Media. The stock trades about -0.08 of its potential returns per unit of risk. The Omnijoi Media Corp is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 779.00 in Omnijoi Media Corp on November 2, 2024 and sell it today you would earn a total of 124.00 from holding Omnijoi Media Corp or generate 15.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lianhe Chemical Technology vs. Omnijoi Media Corp
Performance |
| Timeline |
| Lianhe Chemical Tech |
| Omnijoi Media Corp |
Lianhe Chemical and Omnijoi Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lianhe Chemical and Omnijoi Media
The main advantage of trading using opposite Lianhe Chemical and Omnijoi Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lianhe Chemical position performs unexpectedly, Omnijoi Media 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 Omnijoi Media will offset losses from the drop in Omnijoi Media's long position.| Lianhe Chemical vs. Zijin Mining Group | Lianhe Chemical vs. Wanhua Chemical Group | Lianhe Chemical vs. Baoshan Iron Steel | Lianhe Chemical vs. Shandong Gold Mining |
| Omnijoi Media vs. Beijing YanDong MicroElectronic | Omnijoi Media vs. Sportsoul Co Ltd | Omnijoi Media vs. Suzhou Douson Drilling | Omnijoi Media vs. Integrated Electronic Systems |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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