Correlation Between Shandong Longquan and Lens Technology
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By analyzing existing cross correlation between Shandong Longquan Pipeline and Lens Technology Co, you can compare the effects of market volatilities on Shandong Longquan and Lens Technology 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 Shandong Longquan with a short position of Lens Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Longquan and Lens Technology.
Diversification Opportunities for Shandong Longquan and Lens Technology
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shandong and Lens is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Longquan Pipeline and Lens Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lens Technology and Shandong Longquan 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 Shandong Longquan Pipeline are associated (or correlated) with Lens Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lens Technology has no effect on the direction of Shandong Longquan i.e., Shandong Longquan and Lens Technology go up and down completely randomly.
Pair Corralation between Shandong Longquan and Lens Technology
Assuming the 90 days trading horizon Shandong Longquan is expected to generate 65.57 times less return on investment than Lens Technology. But when comparing it to its historical volatility, Shandong Longquan Pipeline is 2.12 times less risky than Lens Technology. It trades about 0.0 of its potential returns per unit of risk. Lens Technology Co is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 2,065 in Lens Technology Co on October 30, 2024 and sell it today you would earn a total of 536.00 from holding Lens Technology Co or generate 25.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.62% |
| Values | Daily Returns |
Shandong Longquan Pipeline vs. Lens Technology Co
Performance |
| Timeline |
| Shandong Longquan |
| Lens Technology |
Shandong Longquan and Lens Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Longquan and Lens Technology
The main advantage of trading using opposite Shandong Longquan and Lens Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Longquan position performs unexpectedly, Lens Technology 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 Lens Technology will offset losses from the drop in Lens Technology's long position.| Shandong Longquan vs. Zijin Mining Group | Shandong Longquan vs. Wanhua Chemical Group | Shandong Longquan vs. Baoshan Iron Steel | Shandong Longquan vs. Shandong Gold Mining |
| Lens Technology vs. Maccura Biotechnology Co | Lens Technology vs. Jiangsu Hoperun Software | Lens Technology vs. Dhc Software Co | Lens Technology vs. Jinhe Biotechnology Co |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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