Correlation Between Sinosteel Luonai and Lens Technology
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By analyzing existing cross correlation between Sinosteel Luonai Materials and Lens Technology Co, you can compare the effects of market volatilities on Sinosteel Luonai 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 Sinosteel Luonai with a short position of Lens Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinosteel Luonai and Lens Technology.
Diversification Opportunities for Sinosteel Luonai and Lens Technology
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sinosteel and Lens is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Sinosteel Luonai Materials and Lens Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lens Technology and Sinosteel Luonai 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 Sinosteel Luonai Materials 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 Sinosteel Luonai i.e., Sinosteel Luonai and Lens Technology go up and down completely randomly.
Pair Corralation between Sinosteel Luonai and Lens Technology
Assuming the 90 days trading horizon Sinosteel Luonai Materials is expected to under-perform the Lens Technology. But the stock apears to be less risky and, when comparing its historical volatility, Sinosteel Luonai Materials is 1.18 times less risky than Lens Technology. The stock trades about -0.03 of its potential returns per unit of risk. The Lens Technology Co is currently generating about 0.07 of returns per unit of risk over similar time horizon. 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 | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinosteel Luonai Materials vs. Lens Technology Co
Performance |
| Timeline |
| Sinosteel Luonai Mat |
| Lens Technology |
Sinosteel Luonai and Lens Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinosteel Luonai and Lens Technology
The main advantage of trading using opposite Sinosteel Luonai and Lens Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinosteel Luonai 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.| Sinosteel Luonai vs. Zijin Mining Group | Sinosteel Luonai vs. Wanhua Chemical Group | Sinosteel Luonai vs. Baoshan Iron Steel | Sinosteel Luonai vs. Shandong Gold Mining |
| 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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