Correlation Between Success Electronics and LianChuang Electronic
Specify exactly 2 symbols:
By analyzing existing cross correlation between Success Electronics and LianChuang Electronic Technology, you can compare the effects of market volatilities on Success Electronics and LianChuang Electronic 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 Success Electronics with a short position of LianChuang Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Success Electronics and LianChuang Electronic.
Diversification Opportunities for Success Electronics and LianChuang Electronic
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Success and LianChuang is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Success Electronics and LianChuang Electronic Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LianChuang Electronic and Success Electronics 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 Success Electronics are associated (or correlated) with LianChuang Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LianChuang Electronic has no effect on the direction of Success Electronics i.e., Success Electronics and LianChuang Electronic go up and down completely randomly.
Pair Corralation between Success Electronics and LianChuang Electronic
Assuming the 90 days trading horizon Success Electronics is expected to under-perform the LianChuang Electronic. But the stock apears to be less risky and, when comparing its historical volatility, Success Electronics is 1.26 times less risky than LianChuang Electronic. The stock trades about -0.03 of its potential returns per unit of risk. The LianChuang Electronic Technology is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 989.00 in LianChuang Electronic Technology on September 12, 2024 and sell it today you would earn a total of 103.00 from holding LianChuang Electronic Technology or generate 10.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Success Electronics vs. LianChuang Electronic Technolo
Performance |
| Timeline |
| Success Electronics |
| LianChuang Electronic |
Success Electronics and LianChuang Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Success Electronics and LianChuang Electronic
The main advantage of trading using opposite Success Electronics and LianChuang Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Success Electronics position performs unexpectedly, LianChuang Electronic 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 LianChuang Electronic will offset losses from the drop in LianChuang Electronic's long position.| Success Electronics vs. Gansu Jiu Steel | Success Electronics vs. Shandong Mining Machinery | Success Electronics vs. Aba Chemicals Corp | Success Electronics vs. BlueFocus Communication Group |
| LianChuang Electronic vs. Gansu Jiu Steel | LianChuang Electronic vs. Shandong Mining Machinery | LianChuang Electronic vs. Aba Chemicals Corp | LianChuang Electronic vs. BlueFocus Communication 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |