Correlation Between Leaguer Shenzhen and LianChuang Electronic
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By analyzing existing cross correlation between Leaguer Shenzhen MicroElectronics and LianChuang Electronic Technology, you can compare the effects of market volatilities on Leaguer Shenzhen 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 Leaguer Shenzhen with a short position of LianChuang Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leaguer Shenzhen and LianChuang Electronic.
Diversification Opportunities for Leaguer Shenzhen and LianChuang Electronic
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Leaguer and LianChuang is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Leaguer Shenzhen MicroElectron and LianChuang Electronic Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LianChuang Electronic and Leaguer Shenzhen 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 Leaguer Shenzhen MicroElectronics 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 Leaguer Shenzhen i.e., Leaguer Shenzhen and LianChuang Electronic go up and down completely randomly.
Pair Corralation between Leaguer Shenzhen and LianChuang Electronic
Assuming the 90 days trading horizon Leaguer Shenzhen MicroElectronics is expected to generate 0.64 times more return on investment than LianChuang Electronic. However, Leaguer Shenzhen MicroElectronics is 1.57 times less risky than LianChuang Electronic. It trades about -0.03 of its potential returns per unit of risk. LianChuang Electronic Technology is currently generating about -0.05 per unit of risk. If you would invest 3,028 in Leaguer Shenzhen MicroElectronics on September 13, 2024 and sell it today you would lose (73.00) from holding Leaguer Shenzhen MicroElectronics or give up 2.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Leaguer Shenzhen MicroElectron vs. LianChuang Electronic Technolo
Performance |
| Timeline |
| Leaguer Shenzhen Mic |
| LianChuang Electronic |
Leaguer Shenzhen and LianChuang Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leaguer Shenzhen and LianChuang Electronic
The main advantage of trading using opposite Leaguer Shenzhen and LianChuang Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leaguer Shenzhen 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.| Leaguer Shenzhen vs. Nanjing Putian Telecommunications | Leaguer Shenzhen vs. Tianjin Realty Development | Leaguer Shenzhen vs. Kangyue Technology Co | Leaguer Shenzhen vs. Shenzhen Hifuture Electric |
| LianChuang Electronic vs. Industrial and Commercial | LianChuang Electronic vs. Agricultural Bank of | LianChuang Electronic vs. China Construction Bank | LianChuang Electronic 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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