Correlation Between Lecron Energy and Industrial Bank
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By analyzing existing cross correlation between Lecron Energy Saving and Industrial Bank Co, you can compare the effects of market volatilities on Lecron Energy and Industrial Bank 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 Industrial Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lecron Energy and Industrial Bank.
Diversification Opportunities for Lecron Energy and Industrial Bank
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lecron and Industrial is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Lecron Energy Saving and Industrial Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial Bank 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 Industrial Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial Bank has no effect on the direction of Lecron Energy i.e., Lecron Energy and Industrial Bank go up and down completely randomly.
Pair Corralation between Lecron Energy and Industrial Bank
Assuming the 90 days trading horizon Lecron Energy Saving is expected to under-perform the Industrial Bank. In addition to that, Lecron Energy is 2.94 times more volatile than Industrial Bank Co. It trades about -0.07 of its total potential returns per unit of risk. Industrial Bank Co is currently generating about 0.12 per unit of volatility. If you would invest 1,898 in Industrial Bank Co on October 25, 2024 and sell it today you would earn a total of 53.00 from holding Industrial Bank Co or generate 2.79% 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. Industrial Bank Co
Performance |
| Timeline |
| Lecron Energy Saving |
| Industrial Bank |
Lecron Energy and Industrial Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lecron Energy and Industrial Bank
The main advantage of trading using opposite Lecron Energy and Industrial Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lecron Energy position performs unexpectedly, Industrial Bank 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 Industrial Bank will offset losses from the drop in Industrial Bank'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 |
| Industrial Bank vs. Bank of China | Industrial Bank vs. Kweichow Moutai Co | Industrial Bank vs. PetroChina Co Ltd | Industrial Bank vs. Bank of Communications |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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