Correlation Between Hua Xia and LianChuang Electronic
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By analyzing existing cross correlation between Hua Xia Bank and LianChuang Electronic Technology, you can compare the effects of market volatilities on Hua Xia and LianChuang Electronic 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 Hua Xia with a short position of LianChuang Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hua Xia and LianChuang Electronic.
Diversification Opportunities for Hua Xia and LianChuang Electronic
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hua and LianChuang is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hua Xia Bank and LianChuang Electronic Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LianChuang Electronic and Hua Xia 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 Hua Xia Bank are associated (or correlated) with LianChuang Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LianChuang Electronic has no effect on the direction of Hua Xia i.e., Hua Xia and LianChuang Electronic go up and down completely randomly.
Pair Corralation between Hua Xia and LianChuang Electronic
Assuming the 90 days trading horizon Hua Xia Bank is expected to generate 0.41 times more return on investment than LianChuang Electronic. However, Hua Xia Bank is 2.41 times less risky than LianChuang Electronic. It trades about -0.12 of its potential returns per unit of risk. LianChuang Electronic Technology is currently generating about -0.13 per unit of risk. If you would invest 778.00 in Hua Xia Bank on October 17, 2024 and sell it today you would lose (25.00) from holding Hua Xia Bank or give up 3.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hua Xia Bank vs. LianChuang Electronic Technolo
Performance |
| Timeline |
| Hua Xia Bank |
| LianChuang Electronic |
Hua Xia and LianChuang Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hua Xia and LianChuang Electronic
The main advantage of trading using opposite Hua Xia and LianChuang Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hua Xia position performs unexpectedly, LianChuang Electronic 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 LianChuang Electronic will offset losses from the drop in LianChuang Electronic's long position.| Hua Xia vs. Eastern Communications Co | Hua Xia vs. Fujian Wanchen Biotechnology | Hua Xia vs. Wintao Communications Co | Hua Xia vs. Guangdong Shenglu Telecommunication |
| LianChuang Electronic vs. Ningbo Tech Bank Co | LianChuang Electronic vs. Guangdong Qunxing Toys | LianChuang Electronic vs. StarPower Semiconductor | LianChuang Electronic vs. Hua Xia Bank |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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