Correlation Between Lecron Energy and Inner Mongolia
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By analyzing existing cross correlation between Lecron Energy Saving and Inner Mongolia Yitai, you can compare the effects of market volatilities on Lecron Energy and Inner Mongolia 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 Lecron Energy with a short position of Inner Mongolia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lecron Energy and Inner Mongolia.
Diversification Opportunities for Lecron Energy and Inner Mongolia
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Lecron and Inner is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Lecron Energy Saving and Inner Mongolia Yitai in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inner Mongolia Yitai and Lecron Energy 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 Lecron Energy Saving are associated (or correlated) with Inner Mongolia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inner Mongolia Yitai has no effect on the direction of Lecron Energy i.e., Lecron Energy and Inner Mongolia go up and down completely randomly.
Pair Corralation between Lecron Energy and Inner Mongolia
Assuming the 90 days trading horizon Lecron Energy Saving is expected to generate 3.47 times more return on investment than Inner Mongolia. However, Lecron Energy is 3.47 times more volatile than Inner Mongolia Yitai. It trades about 0.05 of its potential returns per unit of risk. Inner Mongolia Yitai is currently generating about 0.07 per unit of risk. If you would invest 476.00 in Lecron Energy Saving on October 10, 2024 and sell it today you would earn a total of 66.00 from holding Lecron Energy Saving or generate 13.87% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Lecron Energy Saving vs. Inner Mongolia Yitai
Performance |
Timeline |
Lecron Energy Saving |
Inner Mongolia Yitai |
Lecron Energy and Inner Mongolia Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lecron Energy and Inner Mongolia
The main advantage of trading using opposite Lecron Energy and Inner Mongolia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lecron Energy position performs unexpectedly, Inner Mongolia 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 Inner Mongolia will offset losses from the drop in Inner Mongolia's long position.Lecron Energy vs. YiDong Electronics Technology | Lecron Energy vs. Shengtak New Material | Lecron Energy vs. Jiangnan Mould Plastic | Lecron Energy vs. King Strong New Material |
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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