Correlation Between Zhejiang Daily and Lens Technology
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By analyzing existing cross correlation between Zhejiang Daily Media and Lens Technology Co, you can compare the effects of market volatilities on Zhejiang Daily and Lens Technology 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 Zhejiang Daily with a short position of Lens Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Daily and Lens Technology.
Diversification Opportunities for Zhejiang Daily and Lens Technology
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Zhejiang and Lens is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Daily Media and Lens Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lens Technology and Zhejiang Daily 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 Zhejiang Daily Media are associated (or correlated) with Lens Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lens Technology has no effect on the direction of Zhejiang Daily i.e., Zhejiang Daily and Lens Technology go up and down completely randomly.
Pair Corralation between Zhejiang Daily and Lens Technology
Assuming the 90 days trading horizon Zhejiang Daily Media is expected to under-perform the Lens Technology. But the stock apears to be less risky and, when comparing its historical volatility, Zhejiang Daily Media is 1.01 times less risky than Lens Technology. The stock trades about -0.46 of its potential returns per unit of risk. The Lens Technology Co is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2,198 in Lens Technology Co on October 14, 2024 and sell it today you would earn a total of 96.00 from holding Lens Technology Co or generate 4.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Daily Media vs. Lens Technology Co
Performance |
| Timeline |
| Zhejiang Daily Media |
| Lens Technology |
Zhejiang Daily and Lens Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Daily and Lens Technology
The main advantage of trading using opposite Zhejiang Daily and Lens Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Daily position performs unexpectedly, Lens Technology 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 Lens Technology will offset losses from the drop in Lens Technology's long position.| Zhejiang Daily vs. Jiangsu Hoperun Software | Zhejiang Daily vs. Hangzhou Pinming Software | Zhejiang Daily vs. Beijing Baolande Software | Zhejiang Daily vs. Telling Telecommunication Holding |
| Lens Technology vs. Biwin Storage Technology | Lens Technology vs. PetroChina Co Ltd | Lens Technology vs. Industrial and Commercial | Lens Technology vs. China Construction 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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