Correlation Between BlueFocus Communication and Shanxi Lanhua
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By analyzing existing cross correlation between BlueFocus Communication Group and Shanxi Lanhua Sci Tech, you can compare the effects of market volatilities on BlueFocus Communication and Shanxi Lanhua 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 BlueFocus Communication with a short position of Shanxi Lanhua. Check out your portfolio center. Please also check ongoing floating volatility patterns of BlueFocus Communication and Shanxi Lanhua.
Diversification Opportunities for BlueFocus Communication and Shanxi Lanhua
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between BlueFocus and Shanxi is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding BlueFocus Communication Group and Shanxi Lanhua Sci Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanxi Lanhua Sci and BlueFocus Communication 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 BlueFocus Communication Group are associated (or correlated) with Shanxi Lanhua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanxi Lanhua Sci has no effect on the direction of BlueFocus Communication i.e., BlueFocus Communication and Shanxi Lanhua go up and down completely randomly.
Pair Corralation between BlueFocus Communication and Shanxi Lanhua
Assuming the 90 days trading horizon BlueFocus Communication Group is expected to generate 3.13 times more return on investment than Shanxi Lanhua. However, BlueFocus Communication is 3.13 times more volatile than Shanxi Lanhua Sci Tech. It trades about 0.15 of its potential returns per unit of risk. Shanxi Lanhua Sci Tech is currently generating about 0.09 per unit of risk. If you would invest 954.00 in BlueFocus Communication Group on September 13, 2024 and sell it today you would earn a total of 199.00 from holding BlueFocus Communication Group or generate 20.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BlueFocus Communication Group vs. Shanxi Lanhua Sci Tech
Performance |
| Timeline |
| BlueFocus Communication |
| Shanxi Lanhua Sci |
BlueFocus Communication and Shanxi Lanhua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BlueFocus Communication and Shanxi Lanhua
The main advantage of trading using opposite BlueFocus Communication and Shanxi Lanhua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BlueFocus Communication position performs unexpectedly, Shanxi Lanhua 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 Shanxi Lanhua will offset losses from the drop in Shanxi Lanhua's long position.| BlueFocus Communication vs. Qingdao Foods Co | BlueFocus Communication vs. China Sports Industry | BlueFocus Communication vs. Sportsoul Co Ltd | BlueFocus Communication vs. Zhengzhou Qianweiyangchu Food |
| Shanxi Lanhua vs. Zhejiang Kingland Pipeline | Shanxi Lanhua vs. HOB Biotech Group | Shanxi Lanhua vs. Ming Yang Smart | Shanxi Lanhua vs. 159681 |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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