Correlation Between Lecron Energy and HeNan Splendor
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By analyzing existing cross correlation between Lecron Energy Saving and HeNan Splendor Science, you can compare the effects of market volatilities on Lecron Energy and HeNan Splendor 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 HeNan Splendor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lecron Energy and HeNan Splendor.
Diversification Opportunities for Lecron Energy and HeNan Splendor
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lecron and HeNan is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Lecron Energy Saving and HeNan Splendor Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HeNan Splendor Science 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 HeNan Splendor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HeNan Splendor Science has no effect on the direction of Lecron Energy i.e., Lecron Energy and HeNan Splendor go up and down completely randomly.
Pair Corralation between Lecron Energy and HeNan Splendor
Assuming the 90 days trading horizon Lecron Energy Saving is expected to under-perform the HeNan Splendor. In addition to that, Lecron Energy is 1.39 times more volatile than HeNan Splendor Science. It trades about -0.02 of its total potential returns per unit of risk. HeNan Splendor Science is currently generating about 0.02 per unit of volatility. If you would invest 890.00 in HeNan Splendor Science on October 16, 2024 and sell it today you would earn a total of 2.00 from holding HeNan Splendor Science or generate 0.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lecron Energy Saving vs. HeNan Splendor Science
Performance |
| Timeline |
| Lecron Energy Saving |
| HeNan Splendor Science |
Lecron Energy and HeNan Splendor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lecron Energy and HeNan Splendor
The main advantage of trading using opposite Lecron Energy and HeNan Splendor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lecron Energy position performs unexpectedly, HeNan Splendor 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 Splendor will offset losses from the drop in HeNan Splendor's long position.| Lecron Energy vs. Songz Automobile Air | Lecron Energy vs. Beijing Kingsoft Office | Lecron Energy vs. Sinomach Automobile Co | Lecron Energy vs. Haima Automobile Group |
| HeNan Splendor vs. Spring Airlines Co | HeNan Splendor vs. Guangzhou Seagull Kitchen | HeNan Splendor vs. Yindu Kitchen Equipment | HeNan Splendor vs. Hangzhou Gaoxin Rubber |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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