Correlation Between Lens Technology and Shanghai Ziyan
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By analyzing existing cross correlation between Lens Technology Co and Shanghai Ziyan Foods, you can compare the effects of market volatilities on Lens Technology and Shanghai Ziyan 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 Shanghai Ziyan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lens Technology and Shanghai Ziyan.
Diversification Opportunities for Lens Technology and Shanghai Ziyan
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lens and Shanghai is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lens Technology Co and Shanghai Ziyan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Ziyan Foods 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 Shanghai Ziyan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Ziyan Foods has no effect on the direction of Lens Technology i.e., Lens Technology and Shanghai Ziyan go up and down completely randomly.
Pair Corralation between Lens Technology and Shanghai Ziyan
Assuming the 90 days trading horizon Lens Technology Co is expected to generate 4.09 times more return on investment than Shanghai Ziyan. However, Lens Technology is 4.09 times more volatile than Shanghai Ziyan Foods. It trades about 0.23 of its potential returns per unit of risk. Shanghai Ziyan Foods is currently generating about -0.18 per unit of risk. If you would invest 2,195 in Lens Technology Co on November 8, 2024 and sell it today you would earn a total of 518.00 from holding Lens Technology Co or generate 23.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lens Technology Co vs. Shanghai Ziyan Foods
Performance |
| Timeline |
| Lens Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Shanghai Ziyan Foods |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lens Technology and Shanghai Ziyan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lens Technology and Shanghai Ziyan
The main advantage of trading using opposite Lens Technology and Shanghai Ziyan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lens Technology position performs unexpectedly, Shanghai Ziyan 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 Shanghai Ziyan will offset losses from the drop in Shanghai Ziyan's long position.The idea behind Lens Technology Co and Shanghai Ziyan Foods pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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