Correlation Between Lens Technology and Industrial
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By analyzing existing cross correlation between Lens Technology Co and Industrial and Commercial, you can compare the effects of market volatilities on Lens Technology and Industrial 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 Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lens Technology and Industrial.
Diversification Opportunities for Lens Technology and Industrial
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lens and Industrial is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Lens Technology Co and Industrial and Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial and Commercial 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 Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial and Commercial has no effect on the direction of Lens Technology i.e., Lens Technology and Industrial go up and down completely randomly.
Pair Corralation between Lens Technology and Industrial
Assuming the 90 days trading horizon Lens Technology Co is expected to generate 1.78 times more return on investment than Industrial. However, Lens Technology is 1.78 times more volatile than Industrial and Commercial. It trades about 0.1 of its potential returns per unit of risk. Industrial and Commercial is currently generating about 0.08 per unit of risk. If you would invest 2,199 in Lens Technology Co on October 15, 2024 and sell it today you would earn a total of 95.00 from holding Lens Technology Co or generate 4.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lens Technology Co vs. Industrial and Commercial
Performance |
| Timeline |
| Lens Technology |
| Industrial and Commercial |
Lens Technology and Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lens Technology and Industrial
The main advantage of trading using opposite Lens Technology and Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lens Technology position performs unexpectedly, Industrial 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 Industrial will offset losses from the drop in Industrial'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 |
| Industrial vs. Huizhou Speed Wireless | Industrial vs. Winner Medical Co | Industrial vs. Quectel Wireless Solutions | Industrial vs. Kontour Medical Technology |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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