Correlation Between Lonkey Industrial and Focus Media
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By analyzing existing cross correlation between Lonkey Industrial Co and Focus Media Information, you can compare the effects of market volatilities on Lonkey Industrial and Focus Media 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 Focus Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lonkey Industrial and Focus Media.
Diversification Opportunities for Lonkey Industrial and Focus Media
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Lonkey and Focus is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Lonkey Industrial Co and Focus Media Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Focus Media Information 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 Focus Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Focus Media Information has no effect on the direction of Lonkey Industrial i.e., Lonkey Industrial and Focus Media go up and down completely randomly.
Pair Corralation between Lonkey Industrial and Focus Media
Assuming the 90 days trading horizon Lonkey Industrial Co is expected to generate 1.41 times more return on investment than Focus Media. However, Lonkey Industrial is 1.41 times more volatile than Focus Media Information. It trades about 0.12 of its potential returns per unit of risk. Focus Media Information is currently generating about -0.17 per unit of risk. If you would invest 340.00 in Lonkey Industrial Co on September 12, 2024 and sell it today you would earn a total of 18.00 from holding Lonkey Industrial Co or generate 5.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lonkey Industrial Co vs. Focus Media Information
Performance |
| Timeline |
| Lonkey Industrial |
| Focus Media Information |
Lonkey Industrial and Focus Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lonkey Industrial and Focus Media
The main advantage of trading using opposite Lonkey Industrial and Focus Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lonkey Industrial position performs unexpectedly, Focus Media 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 Focus Media will offset losses from the drop in Focus Media's long position.| Lonkey Industrial vs. China Petroleum Chemical | Lonkey Industrial vs. PetroChina Co Ltd | Lonkey Industrial vs. China State Construction | Lonkey Industrial vs. China Railway Group |
| Focus Media vs. Gansu Jiu Steel | Focus Media vs. Shandong Mining Machinery | Focus Media vs. Aba Chemicals Corp | Focus Media vs. BlueFocus Communication Group |
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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