Correlation Between Lecron Energy and Hainan Mining
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By analyzing existing cross correlation between Lecron Energy Saving and Hainan Mining Co, you can compare the effects of market volatilities on Lecron Energy and Hainan Mining 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 Hainan Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lecron Energy and Hainan Mining.
Diversification Opportunities for Lecron Energy and Hainan Mining
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lecron and Hainan is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Lecron Energy Saving and Hainan Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Mining 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 Hainan Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Mining has no effect on the direction of Lecron Energy i.e., Lecron Energy and Hainan Mining go up and down completely randomly.
Pair Corralation between Lecron Energy and Hainan Mining
Assuming the 90 days trading horizon Lecron Energy Saving is expected to generate 2.01 times more return on investment than Hainan Mining. However, Lecron Energy is 2.01 times more volatile than Hainan Mining Co. It trades about 0.03 of its potential returns per unit of risk. Hainan Mining Co is currently generating about 0.03 per unit of risk. If you would invest 520.00 in Lecron Energy Saving on November 1, 2024 and sell it today you would earn a total of 50.00 from holding Lecron Energy Saving or generate 9.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lecron Energy Saving vs. Hainan Mining Co
Performance |
| Timeline |
| Lecron Energy Saving |
| Hainan Mining |
Lecron Energy and Hainan Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lecron Energy and Hainan Mining
The main advantage of trading using opposite Lecron Energy and Hainan Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lecron Energy position performs unexpectedly, Hainan Mining 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 Hainan Mining will offset losses from the drop in Hainan Mining's long position.| Lecron Energy vs. Shanghai Jinfeng Wine | Lecron Energy vs. HengFeng Information Technology | Lecron Energy vs. Sharetronic Data Technology | Lecron Energy vs. Xizi Clean Energy |
| Hainan Mining vs. Bank of Suzhou | Hainan Mining vs. Nantong Haixing Electronics | Hainan Mining vs. Epoxy Base Electronic | Hainan Mining vs. Lecron Energy Saving |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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