Correlation Between Lonkey Industrial and Jiajia Food
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By analyzing existing cross correlation between Lonkey Industrial Co and Jiajia Food Group, you can compare the effects of market volatilities on Lonkey Industrial and Jiajia Food 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 Jiajia Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lonkey Industrial and Jiajia Food.
Diversification Opportunities for Lonkey Industrial and Jiajia Food
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lonkey and Jiajia is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Lonkey Industrial Co and Jiajia Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiajia Food Group 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 Jiajia Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiajia Food Group has no effect on the direction of Lonkey Industrial i.e., Lonkey Industrial and Jiajia Food go up and down completely randomly.
Pair Corralation between Lonkey Industrial and Jiajia Food
Assuming the 90 days trading horizon Lonkey Industrial Co is expected to under-perform the Jiajia Food. But the stock apears to be less risky and, when comparing its historical volatility, Lonkey Industrial Co is 1.16 times less risky than Jiajia Food. The stock trades about -0.27 of its potential returns per unit of risk. The Jiajia Food Group is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 462.00 in Jiajia Food Group on October 10, 2024 and sell it today you would lose (11.00) from holding Jiajia Food Group or give up 2.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lonkey Industrial Co vs. Jiajia Food Group
Performance |
| Timeline |
| Lonkey Industrial |
| Jiajia Food Group |
Lonkey Industrial and Jiajia Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lonkey Industrial and Jiajia Food
The main advantage of trading using opposite Lonkey Industrial and Jiajia Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lonkey Industrial position performs unexpectedly, Jiajia Food 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 Jiajia Food will offset losses from the drop in Jiajia Food's long position.| Lonkey Industrial vs. Xiangyang Automobile Bearing | Lonkey Industrial vs. Zoje Resources Investment | Lonkey Industrial vs. Dongfeng Automobile Co | Lonkey Industrial vs. Harbin Hatou Investment |
| Jiajia Food vs. Masterwork Machinery | Jiajia Food vs. Allied Machinery Co | Jiajia Food vs. Huasi Agricultural Development | Jiajia Food vs. Xingguang Agricultural Mach |
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 CEOs Directory module to screen CEOs from public companies around the world.
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