Correlation Between HengFeng Information and Lecron Energy
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By analyzing existing cross correlation between HengFeng Information Technology and Lecron Energy Saving, you can compare the effects of market volatilities on HengFeng Information and Lecron Energy 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 HengFeng Information with a short position of Lecron Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of HengFeng Information and Lecron Energy.
Diversification Opportunities for HengFeng Information and Lecron Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HengFeng and Lecron is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding HengFeng Information Technolog and Lecron Energy Saving in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lecron Energy Saving and HengFeng Information 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 HengFeng Information Technology are associated (or correlated) with Lecron Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lecron Energy Saving has no effect on the direction of HengFeng Information i.e., HengFeng Information and Lecron Energy go up and down completely randomly.
Pair Corralation between HengFeng Information and Lecron Energy
If you would invest 0.00 in Lecron Energy Saving on November 8, 2024 and sell it today you would earn a total of 0.00 from holding Lecron Energy Saving or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HengFeng Information Technolog vs. Lecron Energy Saving
Performance |
| Timeline |
| HengFeng Information |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Lecron Energy Saving |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
HengFeng Information and Lecron Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HengFeng Information and Lecron Energy
The main advantage of trading using opposite HengFeng Information and Lecron Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HengFeng Information position performs unexpectedly, Lecron Energy 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 Lecron Energy will offset losses from the drop in Lecron Energy's long position.The idea behind HengFeng Information Technology and Lecron Energy Saving 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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