Correlation Between Lecron Energy and Chenzhou Jingui
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By analyzing existing cross correlation between Lecron Energy Saving and Chenzhou Jingui Silver, you can compare the effects of market volatilities on Lecron Energy and Chenzhou Jingui 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 Chenzhou Jingui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lecron Energy and Chenzhou Jingui.
Diversification Opportunities for Lecron Energy and Chenzhou Jingui
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lecron and Chenzhou is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Lecron Energy Saving and Chenzhou Jingui Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chenzhou Jingui Silver 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 Chenzhou Jingui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chenzhou Jingui Silver has no effect on the direction of Lecron Energy i.e., Lecron Energy and Chenzhou Jingui go up and down completely randomly.
Pair Corralation between Lecron Energy and Chenzhou Jingui
Assuming the 90 days trading horizon Lecron Energy Saving is expected to under-perform the Chenzhou Jingui. In addition to that, Lecron Energy is 1.54 times more volatile than Chenzhou Jingui Silver. It trades about -0.01 of its total potential returns per unit of risk. Chenzhou Jingui Silver is currently generating about 0.02 per unit of volatility. If you would invest 317.00 in Chenzhou Jingui Silver on October 16, 2024 and sell it today you would earn a total of 32.00 from holding Chenzhou Jingui Silver or generate 10.09% 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. Chenzhou Jingui Silver
Performance |
| Timeline |
| Lecron Energy Saving |
| Chenzhou Jingui Silver |
Lecron Energy and Chenzhou Jingui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lecron Energy and Chenzhou Jingui
The main advantage of trading using opposite Lecron Energy and Chenzhou Jingui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lecron Energy position performs unexpectedly, Chenzhou Jingui 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 Chenzhou Jingui will offset losses from the drop in Chenzhou Jingui's long position.| Lecron Energy vs. Anhui Transport Consulting | Lecron Energy vs. Jahen Household Products | Lecron Energy vs. Western Metal Materials | Lecron Energy vs. Hubei Xingfa Chemicals |
| Chenzhou Jingui vs. Guangdong Qunxing Toys | Chenzhou Jingui vs. Lecron Energy Saving | Chenzhou Jingui vs. Unisplendour Corp | Chenzhou Jingui vs. Ping An Insurance |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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