Correlation Between Lens Technology and Shengtak New
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By analyzing existing cross correlation between Lens Technology Co and Shengtak New Material, you can compare the effects of market volatilities on Lens Technology and Shengtak New 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 Shengtak New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lens Technology and Shengtak New.
Diversification Opportunities for Lens Technology and Shengtak New
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Lens and Shengtak is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Lens Technology Co and Shengtak New Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shengtak New Material 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 Shengtak New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shengtak New Material has no effect on the direction of Lens Technology i.e., Lens Technology and Shengtak New go up and down completely randomly.
Pair Corralation between Lens Technology and Shengtak New
Assuming the 90 days trading horizon Lens Technology Co is expected to generate 0.76 times more return on investment than Shengtak New. However, Lens Technology Co is 1.32 times less risky than Shengtak New. It trades about 0.07 of its potential returns per unit of risk. Shengtak New Material is currently generating about 0.02 per unit of risk. If you would invest 1,020 in Lens Technology Co on September 28, 2024 and sell it today you would earn a total of 1,176 from holding Lens Technology Co or generate 115.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lens Technology Co vs. Shengtak New Material
Performance |
| Timeline |
| Lens Technology |
| Shengtak New Material |
Lens Technology and Shengtak New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lens Technology and Shengtak New
The main advantage of trading using opposite Lens Technology and Shengtak New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lens Technology position performs unexpectedly, Shengtak New 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 Shengtak New will offset losses from the drop in Shengtak New's long position.| Lens Technology vs. Industrial and Commercial | Lens Technology vs. China Construction Bank | Lens Technology vs. Agricultural Bank of | Lens Technology vs. Bank of China |
| Shengtak New vs. Peoples Insurance of | Shengtak New vs. Anhui Deli Household | Shengtak New vs. Harvest Fund Management | Shengtak New vs. Marssenger Kitchenware Co |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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