Correlation Between Lumia and Lecron Energy
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By analyzing existing cross correlation between Lumia and Lecron Energy Saving, you can compare the effects of market volatilities on Lumia 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 Lumia with a short position of Lecron Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lumia and Lecron Energy.
Diversification Opportunities for Lumia and Lecron Energy
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lumia and Lecron is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Lumia 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 Lumia 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 Lumia 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 Lumia i.e., Lumia and Lecron Energy go up and down completely randomly.
Pair Corralation between Lumia and Lecron Energy
Assuming the 90 days trading horizon Lumia is expected to under-perform the Lecron Energy. In addition to that, Lumia is 2.43 times more volatile than Lecron Energy Saving. It trades about -0.37 of its total potential returns per unit of risk. Lecron Energy Saving is currently generating about -0.44 per unit of volatility. If you would invest 700.00 in Lecron Energy Saving on October 12, 2024 and sell it today you would lose (159.00) from holding Lecron Energy Saving or give up 22.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lumia vs. Lecron Energy Saving
Performance |
| Timeline |
| Lumia |
| Lecron Energy Saving |
Lumia and Lecron Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lumia and Lecron Energy
The main advantage of trading using opposite Lumia and Lecron Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lumia 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 Lumia 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.| Lecron Energy vs. Hunan Investment Group | Lecron Energy vs. Zhongrun Resources Investment | Lecron Energy vs. Beijing Mainstreets Investment | Lecron Energy vs. Allwin Telecommunication Co |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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