Correlation Between Eit Environmental and Lecron Energy
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By analyzing existing cross correlation between Eit Environmental Development and Lecron Energy Saving, you can compare the effects of market volatilities on Eit Environmental 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 Eit Environmental with a short position of Lecron Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eit Environmental and Lecron Energy.
Diversification Opportunities for Eit Environmental and Lecron Energy
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eit and Lecron is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Eit Environmental Development 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 Eit Environmental 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 Eit Environmental Development 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 Eit Environmental i.e., Eit Environmental and Lecron Energy go up and down completely randomly.
Pair Corralation between Eit Environmental and Lecron Energy
Assuming the 90 days trading horizon Eit Environmental Development is expected to generate 0.62 times more return on investment than Lecron Energy. However, Eit Environmental Development is 1.62 times less risky than Lecron Energy. It trades about 0.03 of its potential returns per unit of risk. Lecron Energy Saving is currently generating about -0.01 per unit of risk. If you would invest 1,274 in Eit Environmental Development on October 25, 2024 and sell it today you would earn a total of 227.00 from holding Eit Environmental Development or generate 17.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eit Environmental Development vs. Lecron Energy Saving
Performance |
| Timeline |
| Eit Environmental |
| Lecron Energy Saving |
Eit Environmental and Lecron Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eit Environmental and Lecron Energy
The main advantage of trading using opposite Eit Environmental and Lecron Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eit Environmental 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.| Eit Environmental vs. Kweichow Moutai Co | Eit Environmental vs. Contemporary Amperex Technology | Eit Environmental vs. Beijing Roborock Technology | Eit Environmental vs. BYD Co Ltd |
| Lecron Energy vs. Changchun Engley Automobile | Lecron Energy vs. Eyebright Medical Technology | Lecron Energy vs. Touchstone International Medical | Lecron Energy vs. Allgens 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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