Correlation Between JiShi Media and Lens Technology
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By analyzing existing cross correlation between JiShi Media Co and Lens Technology Co, you can compare the effects of market volatilities on JiShi Media 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 JiShi Media with a short position of Lens Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of JiShi Media and Lens Technology.
Diversification Opportunities for JiShi Media and Lens Technology
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between JiShi and Lens is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding JiShi Media Co and Lens Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lens Technology and JiShi Media 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 JiShi Media Co 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 JiShi Media i.e., JiShi Media and Lens Technology go up and down completely randomly.
Pair Corralation between JiShi Media and Lens Technology
Assuming the 90 days trading horizon JiShi Media is expected to generate 4.95 times less return on investment than Lens Technology. In addition to that, JiShi Media is 1.18 times more volatile than Lens Technology Co. It trades about 0.01 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 |
JiShi Media Co vs. Lens Technology Co
Performance |
| Timeline |
| JiShi Media |
| Lens Technology |
JiShi Media and Lens Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JiShi Media and Lens Technology
The main advantage of trading using opposite JiShi Media and Lens Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JiShi Media 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.| JiShi Media vs. Industrial and Commercial | JiShi Media vs. Kweichow Moutai Co | JiShi Media vs. Agricultural Bank of | JiShi Media vs. China Mobile Limited |
| 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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