Correlation Between Xinya Electronic and LianChuang Electronic
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By analyzing existing cross correlation between Xinya Electronic Co and LianChuang Electronic Technology, you can compare the effects of market volatilities on Xinya Electronic and LianChuang Electronic 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 Xinya Electronic with a short position of LianChuang Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinya Electronic and LianChuang Electronic.
Diversification Opportunities for Xinya Electronic and LianChuang Electronic
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xinya and LianChuang is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Xinya Electronic Co and LianChuang Electronic Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LianChuang Electronic and Xinya Electronic 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 Xinya Electronic Co are associated (or correlated) with LianChuang Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LianChuang Electronic has no effect on the direction of Xinya Electronic i.e., Xinya Electronic and LianChuang Electronic go up and down completely randomly.
Pair Corralation between Xinya Electronic and LianChuang Electronic
Assuming the 90 days trading horizon Xinya Electronic is expected to generate 2.1 times less return on investment than LianChuang Electronic. But when comparing it to its historical volatility, Xinya Electronic Co is 1.59 times less risky than LianChuang Electronic. It trades about 0.07 of its potential returns per unit of risk. LianChuang Electronic Technology is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 668.00 in LianChuang Electronic Technology on September 27, 2024 and sell it today you would earn a total of 307.00 from holding LianChuang Electronic Technology or generate 45.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinya Electronic Co vs. LianChuang Electronic Technolo
Performance |
| Timeline |
| Xinya Electronic |
| LianChuang Electronic |
Xinya Electronic and LianChuang Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinya Electronic and LianChuang Electronic
The main advantage of trading using opposite Xinya Electronic and LianChuang Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinya Electronic position performs unexpectedly, LianChuang Electronic 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 LianChuang Electronic will offset losses from the drop in LianChuang Electronic's long position.| Xinya Electronic vs. Shengtak New Material | Xinya Electronic vs. Ningxia Building Materials | Xinya Electronic vs. Jiugui Liquor Co | Xinya Electronic vs. Shenzhen SDG Information |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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