Correlation Between Henan Lantian and Renxin New
Specify exactly 2 symbols:
By analyzing existing cross correlation between Henan Lantian Gas and Renxin New Material, you can compare the effects of market volatilities on Henan Lantian and Renxin New 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 Henan Lantian with a short position of Renxin New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henan Lantian and Renxin New.
Diversification Opportunities for Henan Lantian and Renxin New
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Henan and Renxin is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Henan Lantian Gas and Renxin New Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Renxin New Material and Henan Lantian 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 Henan Lantian Gas are associated (or correlated) with Renxin New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Renxin New Material has no effect on the direction of Henan Lantian i.e., Henan Lantian and Renxin New go up and down completely randomly.
Pair Corralation between Henan Lantian and Renxin New
Assuming the 90 days trading horizon Henan Lantian Gas is expected to under-perform the Renxin New. But the stock apears to be less risky and, when comparing its historical volatility, Henan Lantian Gas is 1.7 times less risky than Renxin New. The stock trades about -0.11 of its potential returns per unit of risk. The Renxin New Material is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,189 in Renxin New Material on September 3, 2024 and sell it today you would earn a total of 38.00 from holding Renxin New Material or generate 3.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Henan Lantian Gas vs. Renxin New Material
Performance |
| Timeline |
| Henan Lantian Gas |
| Renxin New Material |
Henan Lantian and Renxin New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Henan Lantian and Renxin New
The main advantage of trading using opposite Henan Lantian and Renxin New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henan Lantian position performs unexpectedly, Renxin New 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 Renxin New will offset losses from the drop in Renxin New's long position.| Henan Lantian vs. Renxin New Material | Henan Lantian vs. Cangzhou Mingzhu Plastic | Henan Lantian vs. Techshine Electronics Co | Henan Lantian vs. Jiangnan Mould Plastic |
| Renxin New vs. Zijin Mining Group | Renxin New vs. Baoshan Iron Steel | Renxin New vs. Hoshine Silicon Ind |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| 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 | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |