Correlation Between Lecron Energy and Shenyang Chemical
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By analyzing existing cross correlation between Lecron Energy Saving and Shenyang Chemical Industry, you can compare the effects of market volatilities on Lecron Energy and Shenyang Chemical 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 Lecron Energy with a short position of Shenyang Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lecron Energy and Shenyang Chemical.
Diversification Opportunities for Lecron Energy and Shenyang Chemical
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Lecron and Shenyang is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Lecron Energy Saving and Shenyang Chemical Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenyang Chemical and Lecron Energy 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 Lecron Energy Saving are associated (or correlated) with Shenyang Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenyang Chemical has no effect on the direction of Lecron Energy i.e., Lecron Energy and Shenyang Chemical go up and down completely randomly.
Pair Corralation between Lecron Energy and Shenyang Chemical
Assuming the 90 days trading horizon Lecron Energy Saving is expected to generate 1.36 times more return on investment than Shenyang Chemical. However, Lecron Energy is 1.36 times more volatile than Shenyang Chemical Industry. It trades about -0.01 of its potential returns per unit of risk. Shenyang Chemical Industry is currently generating about -0.08 per unit of risk. If you would invest 577.00 in Lecron Energy Saving on November 1, 2024 and sell it today you would lose (7.00) from holding Lecron Energy Saving or give up 1.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lecron Energy Saving vs. Shenyang Chemical Industry
Performance |
| Timeline |
| Lecron Energy Saving |
| Shenyang Chemical |
Lecron Energy and Shenyang Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lecron Energy and Shenyang Chemical
The main advantage of trading using opposite Lecron Energy and Shenyang Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lecron Energy position performs unexpectedly, Shenyang Chemical 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 Shenyang Chemical will offset losses from the drop in Shenyang Chemical's long position.| Lecron Energy vs. Shanghai Jinfeng Wine | Lecron Energy vs. HengFeng Information Technology | Lecron Energy vs. Sharetronic Data Technology | Lecron Energy vs. Xizi Clean Energy |
| Shenyang Chemical vs. Hua Xia Bank | Shenyang Chemical vs. Panda Financial Holding | Shenyang Chemical vs. Shenzhen Centralcon Investment | Shenyang Chemical vs. Lecron Energy Saving |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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