Correlation Between Lecron Energy and Fuda Alloy
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By analyzing existing cross correlation between Lecron Energy Saving and Fuda Alloy Materials, you can compare the effects of market volatilities on Lecron Energy and Fuda Alloy 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 Fuda Alloy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lecron Energy and Fuda Alloy.
Diversification Opportunities for Lecron Energy and Fuda Alloy
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lecron and Fuda is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Lecron Energy Saving and Fuda Alloy Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuda Alloy Materials 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 Fuda Alloy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuda Alloy Materials has no effect on the direction of Lecron Energy i.e., Lecron Energy and Fuda Alloy go up and down completely randomly.
Pair Corralation between Lecron Energy and Fuda Alloy
Assuming the 90 days trading horizon Lecron Energy Saving is expected to under-perform the Fuda Alloy. But the stock apears to be less risky and, when comparing its historical volatility, Lecron Energy Saving is 1.14 times less risky than Fuda Alloy. The stock trades about -0.13 of its potential returns per unit of risk. The Fuda Alloy Materials is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,327 in Fuda Alloy Materials on October 30, 2024 and sell it today you would earn a total of 190.00 from holding Fuda Alloy Materials or generate 14.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lecron Energy Saving vs. Fuda Alloy Materials
Performance |
| Timeline |
| Lecron Energy Saving |
| Fuda Alloy Materials |
Lecron Energy and Fuda Alloy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lecron Energy and Fuda Alloy
The main advantage of trading using opposite Lecron Energy and Fuda Alloy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lecron Energy position performs unexpectedly, Fuda Alloy 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 Fuda Alloy will offset losses from the drop in Fuda Alloy's long position.| Lecron Energy vs. Tederic Machinery Co | Lecron Energy vs. Meinian Onehealth Healthcare | Lecron Energy vs. Guangzhou KDT Machinery | Lecron Energy vs. Shandong Sinoglory Health |
| Fuda Alloy vs. Industrial and Commercial | Fuda Alloy vs. China Construction Bank | Fuda Alloy vs. Bank of China | Fuda Alloy vs. Agricultural Bank of |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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