Correlation Between Lonkey Industrial and Yuan Longping
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By analyzing existing cross correlation between Lonkey Industrial Co and Yuan Longping High tech, you can compare the effects of market volatilities on Lonkey Industrial and Yuan Longping 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 Yuan Longping. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lonkey Industrial and Yuan Longping.
Diversification Opportunities for Lonkey Industrial and Yuan Longping
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lonkey and Yuan is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Lonkey Industrial Co and Yuan Longping High tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yuan Longping High 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 Yuan Longping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yuan Longping High has no effect on the direction of Lonkey Industrial i.e., Lonkey Industrial and Yuan Longping go up and down completely randomly.
Pair Corralation between Lonkey Industrial and Yuan Longping
Assuming the 90 days trading horizon Lonkey Industrial Co is expected to generate 0.92 times more return on investment than Yuan Longping. However, Lonkey Industrial Co is 1.08 times less risky than Yuan Longping. It trades about 0.08 of its potential returns per unit of risk. Yuan Longping High tech is currently generating about 0.05 per unit of risk. If you would invest 320.00 in Lonkey Industrial Co on September 3, 2024 and sell it today you would earn a total of 10.00 from holding Lonkey Industrial Co or generate 3.13% 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. Yuan Longping High tech
Performance |
| Timeline |
| Lonkey Industrial |
| Yuan Longping High |
Lonkey Industrial and Yuan Longping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lonkey Industrial and Yuan Longping
The main advantage of trading using opposite Lonkey Industrial and Yuan Longping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lonkey Industrial position performs unexpectedly, Yuan Longping 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 Yuan Longping will offset losses from the drop in Yuan Longping's long position.| Lonkey Industrial vs. Chengdu Spaceon Electronics | Lonkey Industrial vs. Sinosteel Luonai Materials | Lonkey Industrial vs. JCHX Mining Management | Lonkey Industrial vs. King Strong New Material |
| Yuan Longping vs. Beijing Wantai Biological | Yuan Longping vs. Aluminum Corp of | Yuan Longping vs. COL Digital Publishing | Yuan Longping vs. Shaanxi Meineng Clean |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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