Correlation Between Hainan Mining and Lens Technology
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hainan Mining Co and Lens Technology Co, you can compare the effects of market volatilities on Hainan Mining 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 Hainan Mining with a short position of Lens Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Mining and Lens Technology.
Diversification Opportunities for Hainan Mining and Lens Technology
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hainan and Lens is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Mining 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 Hainan Mining 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 Hainan Mining 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 Hainan Mining i.e., Hainan Mining and Lens Technology go up and down completely randomly.
Pair Corralation between Hainan Mining and Lens Technology
Assuming the 90 days trading horizon Hainan Mining Co is expected to under-perform the Lens Technology. But the stock apears to be less risky and, when comparing its historical volatility, Hainan Mining Co is 1.16 times less risky than Lens Technology. The stock trades about -0.01 of its potential returns per unit of risk. The Lens Technology Co is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,293 in Lens Technology Co on October 15, 2024 and sell it today you would earn a total of 1,001 from holding Lens Technology Co or generate 77.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Mining Co vs. Lens Technology Co
Performance |
| Timeline |
| Hainan Mining |
| Lens Technology |
Hainan Mining and Lens Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Mining and Lens Technology
The main advantage of trading using opposite Hainan Mining and Lens Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Mining 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.| Hainan Mining vs. Zhongfu Information | Hainan Mining vs. Leyard Optoelectronic | Hainan Mining vs. Hygon Information Technology | Hainan Mining vs. CITIC Guoan Information |
| Lens Technology vs. Healthcare Co | Lens Technology vs. Guangdong Shenglu Telecommunication | Lens Technology vs. China Reform Health | Lens Technology vs. Allwin Telecommunication 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |