Correlation Between Century Wind and Lelon Electronics

Can any of the company-specific risk be diversified away by investing in both Century Wind and Lelon Electronics 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 Century Wind and Lelon Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Century Wind Power and Lelon Electronics Corp, you can compare the effects of market volatilities on Century Wind and Lelon Electronics 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 Century Wind with a short position of Lelon Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Century Wind and Lelon Electronics.

Diversification Opportunities for Century Wind and Lelon Electronics

0.0

Correlation Coefficient

Century Wind  Lelon Electronics

Pay attention - limited upside

The 3 months correlation between Century and Lelon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Century Wind Power and Lelon Electronics Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lelon Electronics Corp and Century Wind 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 Century Wind Power are associated (or correlated) with Lelon Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lelon Electronics Corp has no effect on the direction of Century Wind i.e., Century Wind and Lelon Electronics go up and down completely randomly.

Pair Corralation between Century Wind and Lelon Electronics

If you would invest  0.00  in Lelon Electronics Corp on October 14, 2024 and sell it today you would earn a total of  0.00  from holding Lelon Electronics Corp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.54%
Values	Daily Returns

Century Wind Power  vs.  Lelon Electronics Corp

Century Wind Power

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Century Wind Power has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in February 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Lelon Electronics Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Lelon Electronics Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Lelon Electronics is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Century Wind and Lelon Electronics

The main advantage of trading using opposite Century Wind and Lelon Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Century Wind position performs unexpectedly, Lelon Electronics 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 Lelon Electronics will offset losses from the drop in Lelon Electronics' long position.

The idea behind Century Wind Power and Lelon Electronics Corp 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.

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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.