Correlation Between Lepu Medical and Zhejiang Qianjiang
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By analyzing existing cross correlation between Lepu Medical Tech and Zhejiang Qianjiang Motorcycle, you can compare the effects of market volatilities on Lepu Medical and Zhejiang Qianjiang 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 Lepu Medical with a short position of Zhejiang Qianjiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lepu Medical and Zhejiang Qianjiang.
Diversification Opportunities for Lepu Medical and Zhejiang Qianjiang
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lepu and Zhejiang is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lepu Medical Tech and Zhejiang Qianjiang Motorcycle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Qianjiang and Lepu Medical 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 Lepu Medical Tech are associated (or correlated) with Zhejiang Qianjiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Qianjiang has no effect on the direction of Lepu Medical i.e., Lepu Medical and Zhejiang Qianjiang go up and down completely randomly.
Pair Corralation between Lepu Medical and Zhejiang Qianjiang
Assuming the 90 days trading horizon Lepu Medical Tech is expected to under-perform the Zhejiang Qianjiang. But the stock apears to be less risky and, when comparing its historical volatility, Lepu Medical Tech is 2.34 times less risky than Zhejiang Qianjiang. The stock trades about -0.35 of its potential returns per unit of risk. The Zhejiang Qianjiang Motorcycle is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,728 in Zhejiang Qianjiang Motorcycle on October 19, 2024 and sell it today you would earn a total of 141.00 from holding Zhejiang Qianjiang Motorcycle or generate 8.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lepu Medical Tech vs. Zhejiang Qianjiang Motorcycle
Performance |
| Timeline |
| Lepu Medical Tech |
| Zhejiang Qianjiang |
Lepu Medical and Zhejiang Qianjiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lepu Medical and Zhejiang Qianjiang
The main advantage of trading using opposite Lepu Medical and Zhejiang Qianjiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lepu Medical position performs unexpectedly, Zhejiang Qianjiang 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 Zhejiang Qianjiang will offset losses from the drop in Zhejiang Qianjiang's long position.| Lepu Medical vs. Zhejiang Qianjiang Motorcycle | Lepu Medical vs. Chahua Modern Housewares | Lepu Medical vs. Marssenger Kitchenware Co | Lepu Medical vs. Songz Automobile Air |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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