Correlation Between Lens Technology and China Enterprise
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By analyzing existing cross correlation between Lens Technology Co and China Enterprise Co, you can compare the effects of market volatilities on Lens Technology and China Enterprise 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 China Enterprise. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lens Technology and China Enterprise.
Diversification Opportunities for Lens Technology and China Enterprise
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Lens and China is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Lens Technology Co and China Enterprise Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Enterprise 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 China Enterprise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Enterprise has no effect on the direction of Lens Technology i.e., Lens Technology and China Enterprise go up and down completely randomly.
Pair Corralation between Lens Technology and China Enterprise
Assuming the 90 days trading horizon Lens Technology Co is expected to generate 1.0 times more return on investment than China Enterprise. However, Lens Technology Co is 1.0 times less risky than China Enterprise. It trades about 0.05 of its potential returns per unit of risk. China Enterprise Co is currently generating about -0.03 per unit of risk. If you would invest 2,084 in Lens Technology Co on October 15, 2024 and sell it today you would earn a total of 151.00 from holding Lens Technology Co or generate 7.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
Lens Technology Co vs. China Enterprise Co
Performance |
| Timeline |
| Lens Technology |
| China Enterprise |
Lens Technology and China Enterprise Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lens Technology and China Enterprise
The main advantage of trading using opposite Lens Technology and China Enterprise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lens Technology position performs unexpectedly, China Enterprise 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 China Enterprise will offset losses from the drop in China Enterprise's long position.| Lens Technology vs. Healthcare Co | Lens Technology vs. Guangdong Shenglu Telecommunication | Lens Technology vs. China Reform Health | Lens Technology vs. Allwin Telecommunication Co |
| China Enterprise vs. Xinya Electronic Co | China Enterprise vs. Sihui Fuji Electronics | China Enterprise vs. Anhui Shiny Electronic | China Enterprise vs. TongFu Microelectronics 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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