Correlation Between Lonkey Industrial and AVCON Information
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By analyzing existing cross correlation between Lonkey Industrial Co and AVCON Information Tech, you can compare the effects of market volatilities on Lonkey Industrial and AVCON Information 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 AVCON Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lonkey Industrial and AVCON Information.
Diversification Opportunities for Lonkey Industrial and AVCON Information
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lonkey and AVCON is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Lonkey Industrial Co and AVCON Information Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AVCON Information Tech 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 AVCON Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AVCON Information Tech has no effect on the direction of Lonkey Industrial i.e., Lonkey Industrial and AVCON Information go up and down completely randomly.
Pair Corralation between Lonkey Industrial and AVCON Information
Assuming the 90 days trading horizon Lonkey Industrial Co is expected to generate 0.62 times more return on investment than AVCON Information. However, Lonkey Industrial Co is 1.62 times less risky than AVCON Information. It trades about 0.12 of its potential returns per unit of risk. AVCON Information Tech is currently generating about 0.06 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 | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lonkey Industrial Co vs. AVCON Information Tech
Performance |
| Timeline |
| Lonkey Industrial |
| AVCON Information Tech |
Lonkey Industrial and AVCON Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lonkey Industrial and AVCON Information
The main advantage of trading using opposite Lonkey Industrial and AVCON Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lonkey Industrial position performs unexpectedly, AVCON Information 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 AVCON Information will offset losses from the drop in AVCON Information'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 |
| AVCON Information vs. Gansu Jiu Steel | AVCON Information vs. Shandong Mining Machinery | AVCON Information vs. Aba Chemicals Corp | AVCON Information 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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