Correlation Between Lonkey Industrial and Changchun High
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By analyzing existing cross correlation between Lonkey Industrial Co and Changchun High New, you can compare the effects of market volatilities on Lonkey Industrial and Changchun High 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 Lonkey Industrial with a short position of Changchun High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lonkey Industrial and Changchun High.
Diversification Opportunities for Lonkey Industrial and Changchun High
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lonkey and Changchun is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Lonkey Industrial Co and Changchun High New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun High New and Lonkey Industrial 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 Lonkey Industrial Co are associated (or correlated) with Changchun High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun High New has no effect on the direction of Lonkey Industrial i.e., Lonkey Industrial and Changchun High go up and down completely randomly.
Pair Corralation between Lonkey Industrial and Changchun High
Assuming the 90 days trading horizon Lonkey Industrial Co is expected to generate 0.91 times more return on investment than Changchun High. However, Lonkey Industrial Co is 1.1 times less risky than Changchun High. It trades about 0.01 of its potential returns per unit of risk. Changchun High New is currently generating about -0.01 per unit of risk. If you would invest 306.00 in Lonkey Industrial Co on August 27, 2024 and sell it today you would earn a total of 3.00 from holding Lonkey Industrial Co or generate 0.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lonkey Industrial Co vs. Changchun High New
Performance |
| Timeline |
| Lonkey Industrial |
| Changchun High New |
Lonkey Industrial and Changchun High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lonkey Industrial and Changchun High
The main advantage of trading using opposite Lonkey Industrial and Changchun High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lonkey Industrial position performs unexpectedly, Changchun High 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 Changchun High will offset losses from the drop in Changchun High's long position.| Lonkey Industrial vs. Industrial and Commercial | Lonkey Industrial vs. Agricultural Bank of | Lonkey Industrial vs. China Construction Bank | Lonkey Industrial vs. Bank of China |
| Changchun High vs. Lonkey Industrial Co | Changchun High vs. Guangzhou Haozhi Industrial | Changchun High vs. Western Metal Materials | Changchun High vs. Gansu Yasheng Industrial |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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