Correlation Between HeNan Splendor and Lecron Energy
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By analyzing existing cross correlation between HeNan Splendor Science and Lecron Energy Saving, you can compare the effects of market volatilities on HeNan Splendor 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 HeNan Splendor with a short position of Lecron Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of HeNan Splendor and Lecron Energy.
Diversification Opportunities for HeNan Splendor and Lecron Energy
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HeNan and Lecron is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding HeNan Splendor Science 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 HeNan Splendor 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 HeNan Splendor Science 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 HeNan Splendor i.e., HeNan Splendor and Lecron Energy go up and down completely randomly.
Pair Corralation between HeNan Splendor and Lecron Energy
Assuming the 90 days trading horizon HeNan Splendor Science is expected to generate 0.72 times more return on investment than Lecron Energy. However, HeNan Splendor Science is 1.39 times less risky than Lecron Energy. It trades about 0.02 of its potential returns per unit of risk. Lecron Energy Saving is currently generating about -0.02 per unit of risk. If you would invest 890.00 in HeNan Splendor Science on October 16, 2024 and sell it today you would earn a total of 2.00 from holding HeNan Splendor Science or generate 0.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HeNan Splendor Science vs. Lecron Energy Saving
Performance |
| Timeline |
| HeNan Splendor Science |
| Lecron Energy Saving |
HeNan Splendor and Lecron Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HeNan Splendor and Lecron Energy
The main advantage of trading using opposite HeNan Splendor and Lecron Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HeNan Splendor 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.| HeNan Splendor vs. Spring Airlines Co | HeNan Splendor vs. Guangzhou Seagull Kitchen | HeNan Splendor vs. Yindu Kitchen Equipment | HeNan Splendor vs. Hangzhou Gaoxin Rubber |
| Lecron Energy vs. Songz Automobile Air | Lecron Energy vs. Beijing Kingsoft Office | Lecron Energy vs. Sinomach Automobile Co | Lecron Energy vs. Haima Automobile 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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