Correlation Between XRP and Lecron Energy
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By analyzing existing cross correlation between XRP and Lecron Energy Saving, you can compare the effects of market volatilities on XRP 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 XRP with a short position of Lecron Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of XRP and Lecron Energy.
Diversification Opportunities for XRP and Lecron Energy
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between XRP and Lecron is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding XRP 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 XRP 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 XRP 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 XRP i.e., XRP and Lecron Energy go up and down completely randomly.
Pair Corralation between XRP and Lecron Energy
Assuming the 90 days trading horizon XRP is expected to generate 1.88 times more return on investment than Lecron Energy. However, XRP is 1.88 times more volatile than Lecron Energy Saving. It trades about 0.0 of its potential returns per unit of risk. Lecron Energy Saving is currently generating about -0.44 per unit of risk. If you would invest 234.00 in XRP on October 12, 2024 and sell it today you would lose (7.00) from holding XRP or give up 2.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
XRP vs. Lecron Energy Saving
Performance |
| Timeline |
| XRP |
| Lecron Energy Saving |
XRP and Lecron Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XRP and Lecron Energy
The main advantage of trading using opposite XRP and Lecron Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XRP 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 XRP 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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