Correlation Between Dalian Thermal and Lens Technology
Specify exactly 2 symbols:
By analyzing existing cross correlation between Dalian Thermal Power and Lens Technology Co, you can compare the effects of market volatilities on Dalian Thermal 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 Dalian Thermal with a short position of Lens Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dalian Thermal and Lens Technology.
Diversification Opportunities for Dalian Thermal and Lens Technology
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dalian and Lens is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Dalian Thermal Power and Lens Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lens Technology and Dalian Thermal 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 Dalian Thermal Power 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 Dalian Thermal i.e., Dalian Thermal and Lens Technology go up and down completely randomly.
Pair Corralation between Dalian Thermal and Lens Technology
Assuming the 90 days trading horizon Dalian Thermal is expected to generate 1.35 times less return on investment than Lens Technology. In addition to that, Dalian Thermal is 1.42 times more volatile than Lens Technology Co. It trades about 0.04 of its total potential returns per unit of risk. Lens Technology Co is currently generating about 0.07 per unit of volatility. If you would invest 1,043 in Lens Technology Co on September 26, 2024 and sell it today you would earn a total of 1,205 from holding Lens Technology Co or generate 115.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dalian Thermal Power vs. Lens Technology Co
Performance |
| Timeline |
| Dalian Thermal Power |
| Lens Technology |
Dalian Thermal and Lens Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dalian Thermal and Lens Technology
The main advantage of trading using opposite Dalian Thermal and Lens Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dalian Thermal 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.| Dalian Thermal vs. Industrial and Commercial | Dalian Thermal vs. Agricultural Bank of | Dalian Thermal vs. China Construction Bank | Dalian Thermal vs. Bank of China |
| Lens Technology vs. Industrial and Commercial | Lens Technology vs. China Construction Bank | Lens Technology vs. Agricultural Bank of | Lens Technology vs. Bank of China |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |