Correlation Between Lecron Energy and Changjiang Jinggong
Specify exactly 2 symbols:
By analyzing existing cross correlation between Lecron Energy Saving and Changjiang Jinggong Steel, you can compare the effects of market volatilities on Lecron Energy and Changjiang Jinggong 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 Changjiang Jinggong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lecron Energy and Changjiang Jinggong.
Diversification Opportunities for Lecron Energy and Changjiang Jinggong
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lecron and Changjiang is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Lecron Energy Saving and Changjiang Jinggong Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changjiang Jinggong Steel 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 Changjiang Jinggong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changjiang Jinggong Steel has no effect on the direction of Lecron Energy i.e., Lecron Energy and Changjiang Jinggong go up and down completely randomly.
Pair Corralation between Lecron Energy and Changjiang Jinggong
Assuming the 90 days trading horizon Lecron Energy Saving is expected to generate 2.71 times more return on investment than Changjiang Jinggong. However, Lecron Energy is 2.71 times more volatile than Changjiang Jinggong Steel. It trades about -0.01 of its potential returns per unit of risk. Changjiang Jinggong Steel is currently generating about -0.04 per unit of risk. If you would invest 1,095 in Lecron Energy Saving on October 25, 2024 and sell it today you would lose (520.00) from holding Lecron Energy Saving or give up 47.49% 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. Changjiang Jinggong Steel
Performance |
| Timeline |
| Lecron Energy Saving |
| Changjiang Jinggong Steel |
Lecron Energy and Changjiang Jinggong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lecron Energy and Changjiang Jinggong
The main advantage of trading using opposite Lecron Energy and Changjiang Jinggong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lecron Energy position performs unexpectedly, Changjiang Jinggong 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 Changjiang Jinggong will offset losses from the drop in Changjiang Jinggong's long position.| Lecron Energy vs. Changchun Engley Automobile | Lecron Energy vs. Eyebright Medical Technology | Lecron Energy vs. Touchstone International Medical | Lecron Energy vs. Allgens Medical Technology |
| Changjiang Jinggong vs. Kweichow Moutai Co | Changjiang Jinggong vs. Contemporary Amperex Technology | Changjiang Jinggong vs. Beijing Roborock Technology | Changjiang Jinggong vs. BYD Co Ltd |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |