LianChuang Electronic Correlations

002036 Stock

11.34 0.12 1.05%

The current 90-days correlation between LianChuang Electronic and Porton Fine Chemicals is 0.4 (i.e., Very weak diversification). The correlation of LianChuang Electronic is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

LianChuang Electronic Correlation With Market

Significant diversification

The correlation between LianChuang Electronic Technolo and DJI is 0.02 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding LianChuang Electronic Technolo and DJI in the same portfolio, assuming nothing else is changed.

The ability to find closely correlated positions to LianChuang Electronic could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace LianChuang Electronic when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back LianChuang Electronic - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling LianChuang Electronic Technology to buy it.

Moving together with LianChuang Stock

0.62	601398	Industrial and Commercial	Pair Corr
0.68	600036	China Merchants Bank	Pair Corr
0.71	601166	Industrial Bank	Pair Corr

Moving against LianChuang Stock

0.34

601328

Bank of Communications

Pair Corr

Related Correlations Analysis

	300363	002442	002584	000820	001217	601319	001332	000422
300363		0.53	0.35	-0.58	-0.14	0.03	0.39	0.48	300363
002442	0.53		-0.2	-0.57	0.04	-0.3	0.73	0.69	002442
002584	0.35	-0.2		0.25	-0.26	-0.06	-0.03	-0.09	002584
000820	-0.58	-0.57	0.25		0.26	0.29	-0.21	-0.23	000820
001217	-0.14	0.04	-0.26	0.26		0.39	0.22	0.36	001217
601319	0.03	-0.3	-0.06	0.29	0.39		0.04	0.24	601319
001332	0.39	0.73	-0.03	-0.21	0.22	0.04		0.8	001332
000422	0.48	0.69	-0.09	-0.23	0.36	0.24	0.8		000422
	300363	002442	002584	000820	001217	601319	001332	000422

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

000422	+ 0.8	001332
001332	+ 0.73	002442
000422	+ 0.69	002442
002442	+ 0.53	300363
000422	+ 0.48	300363
001332	+ 0.39	300363

High negative correlations

000820	- 0.58	300363
000820	- 0.57	002442
601319	- 0.3	002442
001217	- 0.26	002584
000422	- 0.23	000820
001332	- 0.21	000820

Risk-Adjusted Indicators

There is a big difference between LianChuang Stock performing well and LianChuang Electronic Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze LianChuang Electronic's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
300363	2.00	0.19	0.12	(0.45)	2.06	(2.27)	4.38	(3.17)	14.56
002442	2.18	0.32	0.12	0.86	2.72	(2.41)	4.24	(3.96)	20.11
002584	1.80	(0.04)	0.00	0.41	0.00	0.00	3.73	(3.99)	12.32
000820	3.37	(0.40)	0.00	(0.36)	0.00	0.00	9.89	(8.77)	19.85
001217	2.86	0.18	0.08	(0.23)	3.50	(3.02)	9.98	(6.16)	18.08
601319	1.20	(0.11)	0.00	(0.54)	0.00	0.00	2.16	(3.33)	9.06
001332	1.23	0.17	0.15	(3.37)	1.40	(1.34)	2.67	(1.97)	7.67
000422	1.48	0.11	0.06	0.14	2.04	(1.62)	4.62	(2.45)	11.73

Be your own money manager

Our tools can tell you how much better you can do entering a position in LianChuang Electronic without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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