Correlation Between Lens Technology and CNPC Capital
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By analyzing existing cross correlation between Lens Technology Co and CNPC Capital Co, you can compare the effects of market volatilities on Lens Technology and CNPC Capital 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 Lens Technology with a short position of CNPC Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lens Technology and CNPC Capital.
Diversification Opportunities for Lens Technology and CNPC Capital
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lens and CNPC is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Lens Technology Co and CNPC Capital Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNPC Capital and Lens Technology 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 Lens Technology Co are associated (or correlated) with CNPC Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CNPC Capital has no effect on the direction of Lens Technology i.e., Lens Technology and CNPC Capital go up and down completely randomly.
Pair Corralation between Lens Technology and CNPC Capital
Assuming the 90 days trading horizon Lens Technology Co is expected to generate 1.63 times more return on investment than CNPC Capital. However, Lens Technology is 1.63 times more volatile than CNPC Capital Co. It trades about 0.22 of its potential returns per unit of risk. CNPC Capital Co is currently generating about -0.06 per unit of risk. If you would invest 1,990 in Lens Technology Co on September 27, 2024 and sell it today you would earn a total of 217.00 from holding Lens Technology Co or generate 10.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Lens Technology Co vs. CNPC Capital Co
Performance |
| Timeline |
| Lens Technology |
| CNPC Capital |
Lens Technology and CNPC Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lens Technology and CNPC Capital
The main advantage of trading using opposite Lens Technology and CNPC Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lens Technology position performs unexpectedly, CNPC Capital 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 CNPC Capital will offset losses from the drop in CNPC Capital's long position.| Lens Technology vs. Fujian Oriental Silver | Lens Technology vs. China Satellite Communications | Lens Technology vs. Tibet Huayu Mining | Lens Technology vs. Hainan Mining Co |
| CNPC Capital vs. Ming Yang Smart | CNPC Capital vs. 159681 | CNPC Capital vs. 159005 | CNPC Capital vs. Loctek Ergonomic Technology |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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