Correlation Between Lecron Energy and Chongqing Brewery
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By analyzing existing cross correlation between Lecron Energy Saving and Chongqing Brewery Co, you can compare the effects of market volatilities on Lecron Energy and Chongqing Brewery 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 Brewery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lecron Energy and Chongqing Brewery.
Diversification Opportunities for Lecron Energy and Chongqing Brewery
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lecron and Chongqing is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Lecron Energy Saving and Chongqing Brewery Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Brewery 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 Brewery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Brewery has no effect on the direction of Lecron Energy i.e., Lecron Energy and Chongqing Brewery go up and down completely randomly.
Pair Corralation between Lecron Energy and Chongqing Brewery
Assuming the 90 days trading horizon Lecron Energy Saving is expected to generate 1.97 times more return on investment than Chongqing Brewery. However, Lecron Energy is 1.97 times more volatile than Chongqing Brewery Co. It trades about -0.14 of its potential returns per unit of risk. Chongqing Brewery Co is currently generating about -0.39 per unit of risk. If you would invest 607.00 in Lecron Energy Saving on October 24, 2024 and sell it today you would lose (59.00) from holding Lecron Energy Saving or give up 9.72% 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. Chongqing Brewery Co
Performance |
| Timeline |
| Lecron Energy Saving |
| Chongqing Brewery |
Lecron Energy and Chongqing Brewery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lecron Energy and Chongqing Brewery
The main advantage of trading using opposite Lecron Energy and Chongqing Brewery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lecron Energy position performs unexpectedly, Chongqing Brewery 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 Brewery will offset losses from the drop in Chongqing Brewery's long position.| Lecron Energy vs. Caihong Display Devices | Lecron Energy vs. Konfoong Materials International | Lecron Energy vs. Advanced Technology Materials | Lecron Energy vs. China Sports Industry |
| Chongqing Brewery vs. StarPower Semiconductor | Chongqing Brewery vs. Shandong Longquan Pipeline | Chongqing Brewery vs. Lecron Energy Saving | Chongqing Brewery vs. Zhejiang Kingland Pipeline |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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