Correlation Between Lens Technology and JCET Group
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By analyzing existing cross correlation between Lens Technology Co and JCET Group Co, you can compare the effects of market volatilities on Lens Technology and JCET Group 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 JCET Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lens Technology and JCET Group.
Diversification Opportunities for Lens Technology and JCET Group
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Lens and JCET is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Lens Technology Co and JCET Group Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JCET Group 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 JCET Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JCET Group has no effect on the direction of Lens Technology i.e., Lens Technology and JCET Group go up and down completely randomly.
Pair Corralation between Lens Technology and JCET Group
Assuming the 90 days trading horizon Lens Technology Co is expected to generate 1.22 times more return on investment than JCET Group. However, Lens Technology is 1.22 times more volatile than JCET Group Co. It trades about 0.06 of its potential returns per unit of risk. JCET Group Co is currently generating about 0.07 per unit of risk. If you would invest 1,825 in Lens Technology Co on September 26, 2024 and sell it today you would earn a total of 382.00 from holding Lens Technology Co or generate 20.93% 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. JCET Group Co
Performance |
| Timeline |
| Lens Technology |
| JCET Group |
Lens Technology and JCET Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lens Technology and JCET Group
The main advantage of trading using opposite Lens Technology and JCET Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lens Technology position performs unexpectedly, JCET Group 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 JCET Group will offset losses from the drop in JCET Group'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 |
| JCET Group vs. Dhc Software Co | JCET Group vs. Xinya Electronic Co | JCET Group vs. Fuzhou Rockchip Electronics | JCET Group vs. Kuang Chi Technologies |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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