Correlation Between Fujian Oriental and Lens Technology
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By analyzing existing cross correlation between Fujian Oriental Silver and Lens Technology Co, you can compare the effects of market volatilities on Fujian Oriental 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 Fujian Oriental with a short position of Lens Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Oriental and Lens Technology.
Diversification Opportunities for Fujian Oriental and Lens Technology
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fujian and Lens is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Oriental Silver and Lens Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lens Technology and Fujian Oriental 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 Fujian Oriental Silver 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 Fujian Oriental i.e., Fujian Oriental and Lens Technology go up and down completely randomly.
Pair Corralation between Fujian Oriental and Lens Technology
Assuming the 90 days trading horizon Fujian Oriental Silver is expected to under-perform the Lens Technology. In addition to that, Fujian Oriental is 1.64 times more volatile than Lens Technology Co. It trades about -0.13 of its total potential returns per unit of risk. Lens Technology Co is currently generating about 0.22 per unit of volatility. If you would invest 1,990 in Lens Technology Co on September 27, 2024 and sell it today you would earn a total of 217.00 from holding Lens Technology Co or generate 10.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Oriental Silver vs. Lens Technology Co
Performance |
| Timeline |
| Fujian Oriental Silver |
| Lens Technology |
Fujian Oriental and Lens Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Oriental and Lens Technology
The main advantage of trading using opposite Fujian Oriental and Lens Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Oriental 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.| Fujian Oriental vs. Cultural Investment Holdings | Fujian Oriental vs. Gome Telecom Equipment | Fujian Oriental vs. Bus Online Co | Fujian Oriental vs. Holitech Technology Co |
| Lens Technology vs. Fujian Oriental Silver | Lens Technology vs. China Satellite Communications | Lens Technology vs. Tibet Huayu Mining | Lens Technology vs. Hainan Mining Co |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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