Correlation Between Leaguer Shenzhen and Western Metal
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By analyzing existing cross correlation between Leaguer Shenzhen MicroElectronics and Western Metal Materials, you can compare the effects of market volatilities on Leaguer Shenzhen and Western Metal 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 Western Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leaguer Shenzhen and Western Metal.
Diversification Opportunities for Leaguer Shenzhen and Western Metal
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Leaguer and Western is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Leaguer Shenzhen MicroElectron and Western Metal Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Metal Materials 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 Western Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Metal Materials has no effect on the direction of Leaguer Shenzhen i.e., Leaguer Shenzhen and Western Metal go up and down completely randomly.
Pair Corralation between Leaguer Shenzhen and Western Metal
Assuming the 90 days trading horizon Leaguer Shenzhen MicroElectronics is expected to under-perform the Western Metal. In addition to that, Leaguer Shenzhen is 1.21 times more volatile than Western Metal Materials. It trades about 0.0 of its total potential returns per unit of risk. Western Metal Materials is currently generating about 0.04 per unit of volatility. If you would invest 1,453 in Western Metal Materials on November 28, 2024 and sell it today you would earn a total of 459.00 from holding Western Metal Materials or generate 31.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Leaguer Shenzhen MicroElectron vs. Western Metal Materials
Performance |
| Timeline |
| Leaguer Shenzhen Mic |
| Western Metal Materials |
Leaguer Shenzhen and Western Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leaguer Shenzhen and Western Metal
The main advantage of trading using opposite Leaguer Shenzhen and Western Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leaguer Shenzhen position performs unexpectedly, Western Metal 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 Western Metal will offset losses from the drop in Western Metal's long position.| Leaguer Shenzhen vs. Shanghai Yanpu Metal | Leaguer Shenzhen vs. Shenzhen Urban Transport | Leaguer Shenzhen vs. Hainan Haiqi Transportation | Leaguer Shenzhen vs. Guangdong Jingyi Metal |
| Western Metal vs. Soyea Technology Co | Western Metal vs. Camelot Electronics Technology | Western Metal vs. Jinlong Machinery Electronic | Western Metal vs. Epoxy Base Electronic |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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