Correlation Between Lens Technology and Huaxi Securities
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By analyzing existing cross correlation between Lens Technology Co and Huaxi Securities Co, you can compare the effects of market volatilities on Lens Technology and Huaxi Securities 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 Lens Technology with a short position of Huaxi Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lens Technology and Huaxi Securities.
Diversification Opportunities for Lens Technology and Huaxi Securities
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lens and Huaxi is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Lens Technology Co and Huaxi Securities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huaxi Securities and Lens Technology 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 Lens Technology Co are associated (or correlated) with Huaxi Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huaxi Securities has no effect on the direction of Lens Technology i.e., Lens Technology and Huaxi Securities go up and down completely randomly.
Pair Corralation between Lens Technology and Huaxi Securities
Assuming the 90 days trading horizon Lens Technology Co is expected to generate 1.31 times more return on investment than Huaxi Securities. However, Lens Technology is 1.31 times more volatile than Huaxi Securities Co. It trades about 0.06 of its potential returns per unit of risk. Huaxi Securities Co is currently generating about 0.02 per unit of risk. If you would invest 1,287 in Lens Technology Co on September 29, 2024 and sell it today you would earn a total of 909.00 from holding Lens Technology Co or generate 70.63% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 99.78% |
Values | Daily Returns |
Lens Technology Co vs. Huaxi Securities Co
Performance |
Timeline |
Lens Technology |
Huaxi Securities |
Lens Technology and Huaxi Securities Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lens Technology and Huaxi Securities
The main advantage of trading using opposite Lens Technology and Huaxi Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lens Technology position performs unexpectedly, Huaxi Securities 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 Huaxi Securities will offset losses from the drop in Huaxi Securities' long position.Lens Technology vs. Industrial and Commercial | Lens Technology vs. China Construction Bank | Lens Technology vs. Agricultural Bank of | Lens Technology vs. Bank of China |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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