Correlation Between Lonkey Industrial and Huaxia Fund
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By analyzing existing cross correlation between Lonkey Industrial Co and Huaxia Fund Management, you can compare the effects of market volatilities on Lonkey Industrial and Huaxia Fund 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 Huaxia Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lonkey Industrial and Huaxia Fund.
Diversification Opportunities for Lonkey Industrial and Huaxia Fund
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lonkey and Huaxia is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Lonkey Industrial Co and Huaxia Fund Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huaxia Fund Management 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 Huaxia Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huaxia Fund Management has no effect on the direction of Lonkey Industrial i.e., Lonkey Industrial and Huaxia Fund go up and down completely randomly.
Pair Corralation between Lonkey Industrial and Huaxia Fund
Assuming the 90 days trading horizon Lonkey Industrial Co is expected to generate 3.01 times more return on investment than Huaxia Fund. However, Lonkey Industrial is 3.01 times more volatile than Huaxia Fund Management. It trades about 0.02 of its potential returns per unit of risk. Huaxia Fund Management is currently generating about 0.03 per unit of risk. If you would invest 325.00 in Lonkey Industrial Co on September 3, 2024 and sell it today you would earn a total of 5.00 from holding Lonkey Industrial Co or generate 1.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lonkey Industrial Co vs. Huaxia Fund Management
Performance |
| Timeline |
| Lonkey Industrial |
| Huaxia Fund Management |
Lonkey Industrial and Huaxia Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lonkey Industrial and Huaxia Fund
The main advantage of trading using opposite Lonkey Industrial and Huaxia Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lonkey Industrial position performs unexpectedly, Huaxia Fund 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 Huaxia Fund will offset losses from the drop in Huaxia Fund'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 |
| Huaxia Fund vs. Industrial and Commercial | Huaxia Fund vs. Kweichow Moutai Co | Huaxia Fund vs. Agricultural Bank of | Huaxia Fund vs. China Mobile Limited |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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