Correlation Between Lecron Energy and Anhui Huaren
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By analyzing existing cross correlation between Lecron Energy Saving and Anhui Huaren Health, you can compare the effects of market volatilities on Lecron Energy and Anhui Huaren 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 Huaren. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lecron Energy and Anhui Huaren.
Diversification Opportunities for Lecron Energy and Anhui Huaren
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lecron and Anhui is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Lecron Energy Saving and Anhui Huaren Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Huaren Health 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 Huaren. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Huaren Health has no effect on the direction of Lecron Energy i.e., Lecron Energy and Anhui Huaren go up and down completely randomly.
Pair Corralation between Lecron Energy and Anhui Huaren
Assuming the 90 days trading horizon Lecron Energy Saving is expected to generate 1.5 times more return on investment than Anhui Huaren. However, Lecron Energy is 1.5 times more volatile than Anhui Huaren Health. It trades about -0.08 of its potential returns per unit of risk. Anhui Huaren Health is currently generating about -0.14 per unit of risk. If you would invest 610.00 in Lecron Energy Saving on October 28, 2024 and sell it today you would lose (37.00) from holding Lecron Energy Saving or give up 6.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lecron Energy Saving vs. Anhui Huaren Health
Performance |
| Timeline |
| Lecron Energy Saving |
| Anhui Huaren Health |
Lecron Energy and Anhui Huaren Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lecron Energy and Anhui Huaren
The main advantage of trading using opposite Lecron Energy and Anhui Huaren positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lecron Energy position performs unexpectedly, Anhui Huaren 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 Huaren will offset losses from the drop in Anhui Huaren's long position.| Lecron Energy vs. UCloud Technology Co | Lecron Energy vs. Financial Street Holdings | Lecron Energy vs. GRG Banking Equipment | Lecron Energy vs. Uxi Unicomp Technology |
| Anhui Huaren vs. Cloud Live Technology | Anhui Huaren vs. Nanjing Putian Telecommunications | Anhui Huaren vs. Shenzhen Coship Electronics | Anhui Huaren vs. Shenzhen Hifuture Electric |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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