Correlation Between Hunan Investment and Lecron Energy
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By analyzing existing cross correlation between Hunan Investment Group and Lecron Energy Saving, you can compare the effects of market volatilities on Hunan Investment and Lecron Energy 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 Hunan Investment with a short position of Lecron Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Investment and Lecron Energy.
Diversification Opportunities for Hunan Investment and Lecron Energy
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hunan and Lecron is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Investment Group and Lecron Energy Saving in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lecron Energy Saving and Hunan Investment 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 Hunan Investment Group are associated (or correlated) with Lecron Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lecron Energy Saving has no effect on the direction of Hunan Investment i.e., Hunan Investment and Lecron Energy go up and down completely randomly.
Pair Corralation between Hunan Investment and Lecron Energy
Assuming the 90 days trading horizon Hunan Investment is expected to generate 2.63 times less return on investment than Lecron Energy. But when comparing it to its historical volatility, Hunan Investment Group is 1.22 times less risky than Lecron Energy. It trades about 0.06 of its potential returns per unit of risk. Lecron Energy Saving is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 538.00 in Lecron Energy Saving on August 19, 2025 and sell it today you would earn a total of 90.00 from holding Lecron Energy Saving or generate 16.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Investment Group vs. Lecron Energy Saving
Performance |
| Timeline |
| Hunan Investment |
| Lecron Energy Saving |
Hunan Investment and Lecron Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Investment and Lecron Energy
The main advantage of trading using opposite Hunan Investment and Lecron Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Investment position performs unexpectedly, Lecron Energy 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 Lecron Energy will offset losses from the drop in Lecron Energy's long position.| Hunan Investment vs. UE Furniture Co | Hunan Investment vs. Shandong Publishing Media | Hunan Investment vs. DO Home Collection | Hunan Investment vs. Tangel Publishing |
| Lecron Energy vs. Zijin Mining Group | Lecron Energy vs. Wanhua Chemical Group | Lecron Energy vs. Baoshan Iron Steel | Lecron Energy vs. Shandong Gold Mining |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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