Correlation Between Lens Technology and Jiangsu Zhongtian
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By analyzing existing cross correlation between Lens Technology Co and Jiangsu Zhongtian Technology, you can compare the effects of market volatilities on Lens Technology and Jiangsu Zhongtian 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 Jiangsu Zhongtian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lens Technology and Jiangsu Zhongtian.
Diversification Opportunities for Lens Technology and Jiangsu Zhongtian
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Lens and Jiangsu is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Lens Technology Co and Jiangsu Zhongtian Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Zhongtian 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 Jiangsu Zhongtian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Zhongtian has no effect on the direction of Lens Technology i.e., Lens Technology and Jiangsu Zhongtian go up and down completely randomly.
Pair Corralation between Lens Technology and Jiangsu Zhongtian
Assuming the 90 days trading horizon Lens Technology Co is expected to generate 1.37 times more return on investment than Jiangsu Zhongtian. However, Lens Technology is 1.37 times more volatile than Jiangsu Zhongtian Technology. It trades about 0.25 of its potential returns per unit of risk. Jiangsu Zhongtian Technology is currently generating about -0.09 per unit of risk. If you would invest 1,980 in Lens Technology Co on September 25, 2024 and sell it today you would earn a total of 237.00 from holding Lens Technology Co or generate 11.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Lens Technology Co vs. Jiangsu Zhongtian Technology
Performance |
| Timeline |
| Lens Technology |
| Jiangsu Zhongtian |
Lens Technology and Jiangsu Zhongtian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lens Technology and Jiangsu Zhongtian
The main advantage of trading using opposite Lens Technology and Jiangsu Zhongtian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lens Technology position performs unexpectedly, Jiangsu Zhongtian 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 Jiangsu Zhongtian will offset losses from the drop in Jiangsu Zhongtian'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 |
| Jiangsu Zhongtian vs. Kweichow Moutai Co | Jiangsu Zhongtian vs. Contemporary Amperex Technology | Jiangsu Zhongtian vs. G bits Network Technology | Jiangsu Zhongtian vs. BYD Co Ltd |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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