Correlation Between Lonkey Industrial and Bus Online
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By analyzing existing cross correlation between Lonkey Industrial Co and Bus Online Co, you can compare the effects of market volatilities on Lonkey Industrial and Bus Online 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 Bus Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lonkey Industrial and Bus Online.
Diversification Opportunities for Lonkey Industrial and Bus Online
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lonkey and Bus is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Lonkey Industrial Co and Bus Online Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bus Online 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 Bus Online. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bus Online has no effect on the direction of Lonkey Industrial i.e., Lonkey Industrial and Bus Online go up and down completely randomly.
Pair Corralation between Lonkey Industrial and Bus Online
Assuming the 90 days trading horizon Lonkey Industrial is expected to generate 1.43 times less return on investment than Bus Online. But when comparing it to its historical volatility, Lonkey Industrial Co is 1.09 times less risky than Bus Online. It trades about 0.11 of its potential returns per unit of risk. Bus Online Co is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 473.00 in Bus Online Co on September 2, 2024 and sell it today you would earn a total of 33.00 from holding Bus Online Co or generate 6.98% 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. Bus Online Co
Performance |
| Timeline |
| Lonkey Industrial |
| Bus Online |
Lonkey Industrial and Bus Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lonkey Industrial and Bus Online
The main advantage of trading using opposite Lonkey Industrial and Bus Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lonkey Industrial position performs unexpectedly, Bus Online 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 Bus Online will offset losses from the drop in Bus Online's long position.| Lonkey Industrial vs. Cultural Investment Holdings | Lonkey Industrial vs. Gome Telecom Equipment | Lonkey Industrial vs. Bus Online Co | Lonkey Industrial vs. Holitech Technology Co |
| Bus Online vs. Industrial and Commercial | Bus Online vs. Kweichow Moutai Co | Bus Online vs. Agricultural Bank of | Bus Online vs. China Mobile Limited |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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