Correlation Between 159005 and Loongson Technology
Specify exactly 2 symbols:
By analyzing existing cross correlation between 159005 and Loongson Technology Corp, you can compare the effects of market volatilities on 159005 and Loongson 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 159005 with a short position of Loongson Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159005 and Loongson Technology.
Diversification Opportunities for 159005 and Loongson Technology
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 159005 and Loongson is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding 159005 and Loongson Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loongson Technology Corp 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 Loongson Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loongson Technology Corp has no effect on the direction of 159005 i.e., 159005 and Loongson Technology go up and down completely randomly.
Pair Corralation between 159005 and Loongson Technology
Assuming the 90 days trading horizon 159005 is expected to generate 77.85 times less return on investment than Loongson Technology. But when comparing it to its historical volatility, 159005 is 145.69 times less risky than Loongson Technology. It trades about 0.22 of its potential returns per unit of risk. Loongson Technology Corp is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 8,793 in Loongson Technology Corp on September 26, 2024 and sell it today you would earn a total of 5,864 from holding Loongson Technology Corp or generate 66.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
159005 vs. Loongson Technology Corp
Performance |
| Timeline |
| 159005 |
| Loongson Technology Corp |
159005 and Loongson Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 159005 and Loongson Technology
The main advantage of trading using opposite 159005 and Loongson Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159005 position performs unexpectedly, Loongson 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 Loongson Technology will offset losses from the drop in Loongson Technology's long position.The idea behind 159005 and Loongson Technology Corp 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.| Loongson Technology vs. Ming Yang Smart | Loongson Technology vs. 159681 | Loongson Technology vs. 159005 | Loongson Technology 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |