Correlation Between 159005 and Henan Lantian
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By analyzing existing cross correlation between 159005 and Henan Lantian Gas, you can compare the effects of market volatilities on 159005 and Henan Lantian 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 159005 with a short position of Henan Lantian. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159005 and Henan Lantian.
Diversification Opportunities for 159005 and Henan Lantian
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 159005 and Henan is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding 159005 and Henan Lantian Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henan Lantian Gas and 159005 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 159005 are associated (or correlated) with Henan Lantian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henan Lantian Gas has no effect on the direction of 159005 i.e., 159005 and Henan Lantian go up and down completely randomly.
Pair Corralation between 159005 and Henan Lantian
Assuming the 90 days trading horizon 159005 is expected to generate 27.33 times less return on investment than Henan Lantian. But when comparing it to its historical volatility, 159005 is 74.27 times less risky than Henan Lantian. It trades about 0.15 of its potential returns per unit of risk. Henan Lantian Gas is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 743.00 in Henan Lantian Gas on October 16, 2024 and sell it today you would earn a total of 331.00 from holding Henan Lantian Gas or generate 44.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
159005 vs. Henan Lantian Gas
Performance |
| Timeline |
| 159005 |
| Henan Lantian Gas |
159005 and Henan Lantian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 159005 and Henan Lantian
The main advantage of trading using opposite 159005 and Henan Lantian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159005 position performs unexpectedly, Henan Lantian 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 Henan Lantian will offset losses from the drop in Henan Lantian's long position.The idea behind 159005 and Henan Lantian Gas pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Henan Lantian vs. Ming Yang Smart | Henan Lantian vs. 159681 | Henan Lantian vs. 159005 | Henan Lantian vs. Loctek Ergonomic Technology |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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