Correlation Between Lizhan Environmental and 571903BH5

Can any of the company-specific risk be diversified away by investing in both Lizhan Environmental and 571903BH5 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 Lizhan Environmental and 571903BH5 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Lizhan Environmental and MAR 275 15 OCT 33, you can compare the effects of market volatilities on Lizhan Environmental and 571903BH5 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 Lizhan Environmental with a short position of 571903BH5. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lizhan Environmental and 571903BH5.

Diversification Opportunities for Lizhan Environmental and 571903BH5

0.0

Correlation Coefficient

Lizhan Environmental  571903BH5

Pay attention - limited upside

The 3 months correlation between Lizhan and 571903BH5 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lizhan Environmental and MAR 275 15 OCT 33 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAR 275 15 and Lizhan Environmental 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 Lizhan Environmental are associated (or correlated) with 571903BH5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAR 275 15 has no effect on the direction of Lizhan Environmental i.e., Lizhan Environmental and 571903BH5 go up and down completely randomly.

Pair Corralation between Lizhan Environmental and 571903BH5

If you would invest  0.01  in Lizhan Environmental on October 10, 2024 and sell it today you would earn a total of  0.00  from holding Lizhan Environmental or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.56%
Values	Daily Returns

Lizhan Environmental  vs.  MAR 275 15 OCT 33

Lizhan Environmental

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Lizhan Environmental has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Lizhan Environmental is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

MAR 275 15

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MAR 275 15 OCT 33 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for MAR 275 15 OCT 33 investors.

Pair Trading with Lizhan Environmental and 571903BH5

The main advantage of trading using opposite Lizhan Environmental and 571903BH5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lizhan Environmental position performs unexpectedly, 571903BH5 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 571903BH5 will offset losses from the drop in 571903BH5's long position.

The idea behind Lizhan Environmental and MAR 275 15 OCT 33 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.