Correlation Between Xizi Clean and Lecron Energy
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By analyzing existing cross correlation between Xizi Clean Energy and Lecron Energy Saving, you can compare the effects of market volatilities on Xizi Clean 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 Xizi Clean with a short position of Lecron Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xizi Clean and Lecron Energy.
Diversification Opportunities for Xizi Clean and Lecron Energy
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Xizi and Lecron is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Xizi Clean Energy 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 Xizi Clean 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 Xizi Clean Energy 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 Xizi Clean i.e., Xizi Clean and Lecron Energy go up and down completely randomly.
Pair Corralation between Xizi Clean and Lecron Energy
Assuming the 90 days trading horizon Xizi Clean Energy is expected to generate 1.15 times more return on investment than Lecron Energy. However, Xizi Clean is 1.15 times more volatile than Lecron Energy Saving. It trades about 0.16 of its potential returns per unit of risk. Lecron Energy Saving is currently generating about -0.01 per unit of risk. If you would invest 1,111 in Xizi Clean Energy on November 1, 2024 and sell it today you would earn a total of 114.00 from holding Xizi Clean Energy or generate 10.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xizi Clean Energy vs. Lecron Energy Saving
Performance |
| Timeline |
| Xizi Clean Energy |
| Lecron Energy Saving |
Xizi Clean and Lecron Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xizi Clean and Lecron Energy
The main advantage of trading using opposite Xizi Clean and Lecron Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xizi Clean 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.| Xizi Clean vs. Peoples Insurance of | Xizi Clean vs. Suzhou Mingzhi Technology | Xizi Clean vs. Kuang Chi Technologies | Xizi Clean vs. Wuhan Yangtze Communication |
| Lecron Energy vs. Shanghai Jinfeng Wine | Lecron Energy vs. HengFeng Information Technology | Lecron Energy vs. Sharetronic Data Technology | Lecron Energy vs. Xizi Clean Energy |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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