Correlation Between Lecron Energy and Anhui Shiny
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By analyzing existing cross correlation between Lecron Energy Saving and Anhui Shiny Electronic, you can compare the effects of market volatilities on Lecron Energy and Anhui Shiny 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 Anhui Shiny. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lecron Energy and Anhui Shiny.
Diversification Opportunities for Lecron Energy and Anhui Shiny
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lecron and Anhui is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Lecron Energy Saving and Anhui Shiny Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Shiny Electronic 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 Anhui Shiny. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Shiny Electronic has no effect on the direction of Lecron Energy i.e., Lecron Energy and Anhui Shiny go up and down completely randomly.
Pair Corralation between Lecron Energy and Anhui Shiny
Assuming the 90 days trading horizon Lecron Energy Saving is expected to generate 0.62 times more return on investment than Anhui Shiny. However, Lecron Energy Saving is 1.6 times less risky than Anhui Shiny. It trades about 0.19 of its potential returns per unit of risk. Anhui Shiny Electronic is currently generating about 0.0 per unit of risk. If you would invest 527.00 in Lecron Energy Saving on November 7, 2024 and sell it today you would earn a total of 43.00 from holding Lecron Energy Saving or generate 8.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lecron Energy Saving vs. Anhui Shiny Electronic
Performance |
| Timeline |
| Lecron Energy Saving |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Anhui Shiny Electronic |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
Lecron Energy and Anhui Shiny Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lecron Energy and Anhui Shiny
The main advantage of trading using opposite Lecron Energy and Anhui Shiny positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lecron Energy position performs unexpectedly, Anhui Shiny 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 Anhui Shiny will offset losses from the drop in Anhui Shiny's long position.The idea behind Lecron Energy Saving and Anhui Shiny Electronic pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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