Correlation Between Lonkey Industrial and Kidswant Children
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By analyzing existing cross correlation between Lonkey Industrial Co and Kidswant Children Products, you can compare the effects of market volatilities on Lonkey Industrial and Kidswant Children 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 Kidswant Children. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lonkey Industrial and Kidswant Children.
Diversification Opportunities for Lonkey Industrial and Kidswant Children
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lonkey and Kidswant is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Lonkey Industrial Co and Kidswant Children Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kidswant Children 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 Kidswant Children. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kidswant Children has no effect on the direction of Lonkey Industrial i.e., Lonkey Industrial and Kidswant Children go up and down completely randomly.
Pair Corralation between Lonkey Industrial and Kidswant Children
Assuming the 90 days trading horizon Lonkey Industrial Co is expected to under-perform the Kidswant Children. But the stock apears to be less risky and, when comparing its historical volatility, Lonkey Industrial Co is 1.58 times less risky than Kidswant Children. The stock trades about -0.39 of its potential returns per unit of risk. The Kidswant Children Products is currently generating about -0.18 of returns per unit of risk over similar time horizon. If you would invest 1,401 in Kidswant Children Products on October 12, 2024 and sell it today you would lose (227.00) from holding Kidswant Children Products or give up 16.2% 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. Kidswant Children Products
Performance |
| Timeline |
| Lonkey Industrial |
| Kidswant Children |
Lonkey Industrial and Kidswant Children Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lonkey Industrial and Kidswant Children
The main advantage of trading using opposite Lonkey Industrial and Kidswant Children positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lonkey Industrial position performs unexpectedly, Kidswant Children 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 Kidswant Children will offset losses from the drop in Kidswant Children's long position.| Lonkey Industrial vs. Hubei Geoway Investment | Lonkey Industrial vs. Zoje Resources Investment | Lonkey Industrial vs. Shuhua Sports Co | Lonkey Industrial vs. Tieling Newcity Investment |
| Kidswant Children vs. Suzhou Industrial Park | Kidswant Children vs. Puya Semiconductor Shanghai | Kidswant Children vs. Lonkey Industrial Co | Kidswant Children vs. Suzhou Oriental Semiconductor |
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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