Correlation Between Voltronic Power and Lihtai Construction
Can any of the company-specific risk be diversified away by investing in both Voltronic Power and Lihtai Construction at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Voltronic Power and Lihtai Construction into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voltronic Power Technology and Lihtai Construction Enterprise, you can compare the effects of market volatilities on Voltronic Power and Lihtai Construction 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 Voltronic Power with a short position of Lihtai Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voltronic Power and Lihtai Construction.
Diversification Opportunities for Voltronic Power and Lihtai Construction
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Voltronic and Lihtai is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Voltronic Power Technology and Lihtai Construction Enterprise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lihtai Construction and Voltronic Power 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 Voltronic Power Technology are associated (or correlated) with Lihtai Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lihtai Construction has no effect on the direction of Voltronic Power i.e., Voltronic Power and Lihtai Construction go up and down completely randomly.
Pair Corralation between Voltronic Power and Lihtai Construction
Assuming the 90 days trading horizon Voltronic Power Technology is expected to under-perform the Lihtai Construction. In addition to that, Voltronic Power is 6.08 times more volatile than Lihtai Construction Enterprise. It trades about -0.07 of its total potential returns per unit of risk. Lihtai Construction Enterprise is currently generating about 0.08 per unit of volatility. If you would invest 8,060 in Lihtai Construction Enterprise on October 26, 2024 and sell it today you would earn a total of 170.00 from holding Lihtai Construction Enterprise or generate 2.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voltronic Power Technology vs. Lihtai Construction Enterprise
Performance |
| Timeline |
| Voltronic Power Tech |
| Lihtai Construction |
Voltronic Power and Lihtai Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voltronic Power and Lihtai Construction
The main advantage of trading using opposite Voltronic Power and Lihtai Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voltronic Power position performs unexpectedly, Lihtai Construction 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 Lihtai Construction will offset losses from the drop in Lihtai Construction's long position.| Voltronic Power vs. Silergy Corp | Voltronic Power vs. Airtac International Group | Voltronic Power vs. Advantech Co | Voltronic Power vs. Sinbon Electronics Co |
| Lihtai Construction vs. Chinese Maritime Transport | Lihtai Construction vs. Univacco Technology | Lihtai Construction vs. Voltronic Power Technology | Lihtai Construction vs. Evergreen Steel Corp |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |