Correlation Between Geron and LianChuang Electronic
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By analyzing existing cross correlation between Geron Co and LianChuang Electronic Technology, you can compare the effects of market volatilities on Geron 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 Geron with a short position of LianChuang Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Geron and LianChuang Electronic.
Diversification Opportunities for Geron and LianChuang Electronic
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Geron and LianChuang is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Geron Co and LianChuang Electronic Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LianChuang Electronic and Geron 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 Geron Co 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 Geron i.e., Geron and LianChuang Electronic go up and down completely randomly.
Pair Corralation between Geron and LianChuang Electronic
Assuming the 90 days trading horizon Geron Co is expected to generate 0.98 times more return on investment than LianChuang Electronic. However, Geron Co is 1.02 times less risky than LianChuang Electronic. It trades about -0.13 of its potential returns per unit of risk. LianChuang Electronic Technology is currently generating about -0.18 per unit of risk. If you would invest 1,601 in Geron Co on October 21, 2024 and sell it today you would lose (128.00) from holding Geron Co or give up 8.0% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Geron Co vs. LianChuang Electronic Technolo
Performance |
Timeline |
Geron |
LianChuang Electronic |
Geron and LianChuang Electronic Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Geron and LianChuang Electronic
The main advantage of trading using opposite Geron and LianChuang Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Geron 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.Geron vs. Chongqing Changan Automobile | Geron vs. Orinko Advanced Plastics | Geron vs. CIMC Vehicles Co | Geron vs. Tsingtao Brewery 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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