Correlation Between Lonkey Industrial and Yoantion Industrial
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By analyzing existing cross correlation between Lonkey Industrial Co and Yoantion Industrial IncLtd, you can compare the effects of market volatilities on Lonkey Industrial and Yoantion Industrial 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 Yoantion Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lonkey Industrial and Yoantion Industrial.
Diversification Opportunities for Lonkey Industrial and Yoantion Industrial
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Lonkey and Yoantion is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Lonkey Industrial Co and Yoantion Industrial IncLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yoantion Industrial 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 Yoantion Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yoantion Industrial has no effect on the direction of Lonkey Industrial i.e., Lonkey Industrial and Yoantion Industrial go up and down completely randomly.
Pair Corralation between Lonkey Industrial and Yoantion Industrial
Assuming the 90 days trading horizon Lonkey Industrial is expected to generate 4.94 times less return on investment than Yoantion Industrial. But when comparing it to its historical volatility, Lonkey Industrial Co is 1.64 times less risky than Yoantion Industrial. It trades about 0.01 of its potential returns per unit of risk. Yoantion Industrial IncLtd is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,063 in Yoantion Industrial IncLtd on September 3, 2024 and sell it today you would earn a total of 190.00 from holding Yoantion Industrial IncLtd or generate 9.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lonkey Industrial Co vs. Yoantion Industrial IncLtd
Performance |
| Timeline |
| Lonkey Industrial |
| Yoantion Industrial |
Lonkey Industrial and Yoantion Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lonkey Industrial and Yoantion Industrial
The main advantage of trading using opposite Lonkey Industrial and Yoantion Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lonkey Industrial position performs unexpectedly, Yoantion Industrial 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 Yoantion Industrial will offset losses from the drop in Yoantion Industrial's long position.| Lonkey Industrial vs. Chengdu Spaceon Electronics | Lonkey Industrial vs. Sinosteel Luonai Materials | Lonkey Industrial vs. JCHX Mining Management | Lonkey Industrial vs. King Strong New Material |
| Yoantion Industrial vs. Touchstone International Medical | Yoantion Industrial vs. Cowealth Medical China | Yoantion Industrial vs. GKHT Medical Technology | Yoantion Industrial vs. Bangyan Technology Co |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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