Correlation Between Lonkey Industrial and Porton Fine
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By analyzing existing cross correlation between Lonkey Industrial Co and Porton Fine Chemicals, you can compare the effects of market volatilities on Lonkey Industrial and Porton Fine 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 Porton Fine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lonkey Industrial and Porton Fine.
Diversification Opportunities for Lonkey Industrial and Porton Fine
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lonkey and Porton is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Lonkey Industrial Co and Porton Fine Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Porton Fine Chemicals 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 Porton Fine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Porton Fine Chemicals has no effect on the direction of Lonkey Industrial i.e., Lonkey Industrial and Porton Fine go up and down completely randomly.
Pair Corralation between Lonkey Industrial and Porton Fine
Assuming the 90 days trading horizon Lonkey Industrial Co is expected to generate 0.8 times more return on investment than Porton Fine. However, Lonkey Industrial Co is 1.24 times less risky than Porton Fine. It trades about -0.15 of its potential returns per unit of risk. Porton Fine Chemicals is currently generating about -0.24 per unit of risk. If you would invest 340.00 in Lonkey Industrial Co on October 12, 2024 and sell it today you would lose (54.00) from holding Lonkey Industrial Co or give up 15.88% 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. Porton Fine Chemicals
Performance |
| Timeline |
| Lonkey Industrial |
| Porton Fine Chemicals |
Lonkey Industrial and Porton Fine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lonkey Industrial and Porton Fine
The main advantage of trading using opposite Lonkey Industrial and Porton Fine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lonkey Industrial position performs unexpectedly, Porton Fine 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 Porton Fine will offset losses from the drop in Porton Fine's long position.| Lonkey Industrial vs. Sichuan Fulin Transportation | Lonkey Industrial vs. Anhui Huaren Health | Lonkey Industrial vs. Hunan TV Broadcast | Lonkey Industrial vs. Everjoy Health Group |
| Porton Fine vs. Sichuan Yahua Industrial | Porton Fine vs. Xinjiang Baodi Mining | Porton Fine vs. Lonkey Industrial Co | Porton Fine vs. Lontium Semiconductor Corp |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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