Correlation Between Lonkey Industrial and Guangzhou Shangpin
Specify exactly 2 symbols:
By analyzing existing cross correlation between Lonkey Industrial Co and Guangzhou Shangpin Home, you can compare the effects of market volatilities on Lonkey Industrial and Guangzhou Shangpin 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 Guangzhou Shangpin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lonkey Industrial and Guangzhou Shangpin.
Diversification Opportunities for Lonkey Industrial and Guangzhou Shangpin
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lonkey and Guangzhou is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Lonkey Industrial Co and Guangzhou Shangpin Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Shangpin Home 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 Guangzhou Shangpin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Shangpin Home has no effect on the direction of Lonkey Industrial i.e., Lonkey Industrial and Guangzhou Shangpin go up and down completely randomly.
Pair Corralation between Lonkey Industrial and Guangzhou Shangpin
Assuming the 90 days trading horizon Lonkey Industrial Co is expected to generate 0.7 times more return on investment than Guangzhou Shangpin. However, Lonkey Industrial Co is 1.43 times less risky than Guangzhou Shangpin. It trades about 0.0 of its potential returns per unit of risk. Guangzhou Shangpin Home is currently generating about 0.0 per unit of risk. If you would invest 360.00 in Lonkey Industrial Co on September 2, 2024 and sell it today you would lose (30.00) from holding Lonkey Industrial Co or give up 8.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lonkey Industrial Co vs. Guangzhou Shangpin Home
Performance |
| Timeline |
| Lonkey Industrial |
| Guangzhou Shangpin Home |
Lonkey Industrial and Guangzhou Shangpin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lonkey Industrial and Guangzhou Shangpin
The main advantage of trading using opposite Lonkey Industrial and Guangzhou Shangpin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lonkey Industrial position performs unexpectedly, Guangzhou Shangpin 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 Guangzhou Shangpin will offset losses from the drop in Guangzhou Shangpin'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 |
| Guangzhou Shangpin vs. Guangdong Shenglu Telecommunication | Guangzhou Shangpin vs. Zotye Automobile Co | Guangzhou Shangpin vs. Anhui Deli Household | Guangzhou Shangpin vs. Haima Automobile 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |