Correlation Between Lens Technology and Healthcare
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By analyzing existing cross correlation between Lens Technology Co and Healthcare Co, you can compare the effects of market volatilities on Lens Technology and Healthcare 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 Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lens Technology and Healthcare.
Diversification Opportunities for Lens Technology and Healthcare
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Lens and Healthcare is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Lens Technology Co and Healthcare Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Healthcare 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 Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Healthcare has no effect on the direction of Lens Technology i.e., Lens Technology and Healthcare go up and down completely randomly.
Pair Corralation between Lens Technology and Healthcare
Assuming the 90 days trading horizon Lens Technology Co is expected to generate 0.97 times more return on investment than Healthcare. However, Lens Technology Co is 1.03 times less risky than Healthcare. It trades about 0.1 of its potential returns per unit of risk. Healthcare Co is currently generating about -0.38 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 Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lens Technology Co vs. Healthcare Co
Performance |
| Timeline |
| Lens Technology |
| Healthcare |
Lens Technology and Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lens Technology and Healthcare
The main advantage of trading using opposite Lens Technology and Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lens Technology position performs unexpectedly, Healthcare 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 Healthcare will offset losses from the drop in Healthcare'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 |
| Healthcare vs. Eyebright Medical Technology | Healthcare vs. Holitech Technology Co | Healthcare vs. Porton Fine Chemicals | Healthcare vs. Montage Technology 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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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