Correlation Between Shanghai CEO and Lecron Energy
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shanghai CEO Environmental and Lecron Energy Saving, you can compare the effects of market volatilities on Shanghai CEO and Lecron Energy 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 Shanghai CEO with a short position of Lecron Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai CEO and Lecron Energy.
Diversification Opportunities for Shanghai CEO and Lecron Energy
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shanghai and Lecron is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai CEO Environmental and Lecron Energy Saving in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lecron Energy Saving and Shanghai CEO 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 Shanghai CEO Environmental are associated (or correlated) with Lecron Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lecron Energy Saving has no effect on the direction of Shanghai CEO i.e., Shanghai CEO and Lecron Energy go up and down completely randomly.
Pair Corralation between Shanghai CEO and Lecron Energy
Assuming the 90 days trading horizon Shanghai CEO is expected to generate 4.1 times less return on investment than Lecron Energy. But when comparing it to its historical volatility, Shanghai CEO Environmental is 1.97 times less risky than Lecron Energy. It trades about 0.03 of its potential returns per unit of risk. Lecron Energy Saving is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 445.00 in Lecron Energy Saving on November 7, 2024 and sell it today you would earn a total of 125.00 from holding Lecron Energy Saving or generate 28.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai CEO Environmental vs. Lecron Energy Saving
Performance |
| Timeline |
| Shanghai CEO Environ |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Lecron Energy Saving |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Shanghai CEO and Lecron Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai CEO and Lecron Energy
The main advantage of trading using opposite Shanghai CEO and Lecron Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai CEO position performs unexpectedly, Lecron Energy 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 Lecron Energy will offset losses from the drop in Lecron Energy's long position.The idea behind Shanghai CEO Environmental and Lecron Energy Saving pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |