Correlation Between Lecron Energy and Chongqing Landai
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By analyzing existing cross correlation between Lecron Energy Saving and Chongqing Landai Powertrain, you can compare the effects of market volatilities on Lecron Energy and Chongqing Landai 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 Chongqing Landai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lecron Energy and Chongqing Landai.
Diversification Opportunities for Lecron Energy and Chongqing Landai
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Lecron and Chongqing is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Lecron Energy Saving and Chongqing Landai Powertrain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Landai Pow 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 Chongqing Landai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Landai Pow has no effect on the direction of Lecron Energy i.e., Lecron Energy and Chongqing Landai go up and down completely randomly.
Pair Corralation between Lecron Energy and Chongqing Landai
Assuming the 90 days trading horizon Lecron Energy Saving is expected to under-perform the Chongqing Landai. But the stock apears to be less risky and, when comparing its historical volatility, Lecron Energy Saving is 1.56 times less risky than Chongqing Landai. The stock trades about -0.14 of its potential returns per unit of risk. The Chongqing Landai Powertrain is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 904.00 in Chongqing Landai Powertrain on October 23, 2024 and sell it today you would earn a total of 96.00 from holding Chongqing Landai Powertrain or generate 10.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lecron Energy Saving vs. Chongqing Landai Powertrain
Performance |
| Timeline |
| Lecron Energy Saving |
| Chongqing Landai Pow |
Lecron Energy and Chongqing Landai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lecron Energy and Chongqing Landai
The main advantage of trading using opposite Lecron Energy and Chongqing Landai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lecron Energy position performs unexpectedly, Chongqing Landai 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 Chongqing Landai will offset losses from the drop in Chongqing Landai's long position.| Lecron Energy vs. Guilin Seamild Foods | Lecron Energy vs. Guangzhou Jointas Chemical | Lecron Energy vs. Beijing Jiaman Dress | Lecron Energy vs. Shandong Rike Chemical |
| Chongqing Landai vs. Agricultural Bank of | Chongqing Landai vs. Lecron Energy Saving | Chongqing Landai vs. Postal Savings Bank | Chongqing Landai vs. Panda Financial Holding |
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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