Correlation Between Lens Technology and Fujian Oriental
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By analyzing existing cross correlation between Lens Technology Co and Fujian Oriental Silver, you can compare the effects of market volatilities on Lens Technology and Fujian Oriental 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 Fujian Oriental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lens Technology and Fujian Oriental.
Diversification Opportunities for Lens Technology and Fujian Oriental
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Lens and Fujian is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Lens Technology Co and Fujian Oriental Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Oriental Silver 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 Fujian Oriental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Oriental Silver has no effect on the direction of Lens Technology i.e., Lens Technology and Fujian Oriental go up and down completely randomly.
Pair Corralation between Lens Technology and Fujian Oriental
Assuming the 90 days trading horizon Lens Technology Co is expected to generate 0.71 times more return on investment than Fujian Oriental. However, Lens Technology Co is 1.4 times less risky than Fujian Oriental. It trades about 0.06 of its potential returns per unit of risk. Fujian Oriental Silver is currently generating about -0.03 per unit of risk. If you would invest 1,293 in Lens Technology Co on October 15, 2024 and sell it today you would earn a total of 1,001 from holding Lens Technology Co or generate 77.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lens Technology Co vs. Fujian Oriental Silver
Performance |
| Timeline |
| Lens Technology |
| Fujian Oriental Silver |
Lens Technology and Fujian Oriental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lens Technology and Fujian Oriental
The main advantage of trading using opposite Lens Technology and Fujian Oriental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lens Technology position performs unexpectedly, Fujian Oriental 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 Fujian Oriental will offset losses from the drop in Fujian Oriental'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 |
| Fujian Oriental vs. Gan Yuan Foods | Fujian Oriental vs. Tibet Huayu Mining | Fujian Oriental vs. Bosera CMSK Industrial | Fujian Oriental vs. Chengtun Mining Group |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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