Correlation Between Lecron Energy and Dongxing Sec
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By analyzing existing cross correlation between Lecron Energy Saving and Dongxing Sec Co, you can compare the effects of market volatilities on Lecron Energy and Dongxing Sec 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 Dongxing Sec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lecron Energy and Dongxing Sec.
Diversification Opportunities for Lecron Energy and Dongxing Sec
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lecron and Dongxing is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Lecron Energy Saving and Dongxing Sec Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongxing Sec 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 Dongxing Sec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongxing Sec has no effect on the direction of Lecron Energy i.e., Lecron Energy and Dongxing Sec go up and down completely randomly.
Pair Corralation between Lecron Energy and Dongxing Sec
Assuming the 90 days trading horizon Lecron Energy Saving is expected to under-perform the Dongxing Sec. In addition to that, Lecron Energy is 1.16 times more volatile than Dongxing Sec Co. It trades about -0.07 of its total potential returns per unit of risk. Dongxing Sec Co is currently generating about -0.08 per unit of volatility. If you would invest 1,144 in Dongxing Sec Co on October 25, 2024 and sell it today you would lose (59.00) from holding Dongxing Sec Co or give up 5.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lecron Energy Saving vs. Dongxing Sec Co
Performance |
| Timeline |
| Lecron Energy Saving |
| Dongxing Sec |
Lecron Energy and Dongxing Sec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lecron Energy and Dongxing Sec
The main advantage of trading using opposite Lecron Energy and Dongxing Sec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lecron Energy position performs unexpectedly, Dongxing Sec 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 Dongxing Sec will offset losses from the drop in Dongxing Sec'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 |
| Dongxing Sec vs. Tianjin Hi Tech Development | Dongxing Sec vs. Strait Innovation Internet | Dongxing Sec vs. Linktel Technologies Co | Dongxing Sec vs. Tongyu Communication |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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