Correlation Between Lichen China and Ecoloclean Industrs
Can any of the company-specific risk be diversified away by investing in both Lichen China and Ecoloclean Industrs 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 Lichen China and Ecoloclean Industrs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lichen China Limited and Ecoloclean Industrs, you can compare the effects of market volatilities on Lichen China and Ecoloclean Industrs 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 Lichen China with a short position of Ecoloclean Industrs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lichen China and Ecoloclean Industrs.
Diversification Opportunities for Lichen China and Ecoloclean Industrs
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lichen and Ecoloclean is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lichen China Limited and Ecoloclean Industrs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ecoloclean Industrs and Lichen China 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 Lichen China Limited are associated (or correlated) with Ecoloclean Industrs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ecoloclean Industrs has no effect on the direction of Lichen China i.e., Lichen China and Ecoloclean Industrs go up and down completely randomly.
Pair Corralation between Lichen China and Ecoloclean Industrs
If you would invest 0.00 in Ecoloclean Industrs on October 29, 2024 and sell it today you would earn a total of 0.00 from holding Ecoloclean Industrs or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
Lichen China Limited vs. Ecoloclean Industrs
Performance |
| Timeline |
| Lichen China Limited |
| Ecoloclean Industrs |
Lichen China and Ecoloclean Industrs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lichen China and Ecoloclean Industrs
The main advantage of trading using opposite Lichen China and Ecoloclean Industrs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lichen China position performs unexpectedly, Ecoloclean Industrs 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 Ecoloclean Industrs will offset losses from the drop in Ecoloclean Industrs' long position.| Lichen China vs. First Advantage Corp | Lichen China vs. Discount Print USA | Lichen China vs. Cass Information Systems | Lichen China vs. Civeo Corp |
| Ecoloclean Industrs vs. Ecolab Inc | Ecoloclean Industrs vs. Sealed Air | Ecoloclean Industrs vs. Park Electrochemical | Ecoloclean Industrs vs. Chester Mining |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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