Correlation Between Lonkey Industrial and Hubei Xingfa
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By analyzing existing cross correlation between Lonkey Industrial Co and Hubei Xingfa Chemicals, you can compare the effects of market volatilities on Lonkey Industrial and Hubei Xingfa 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 Hubei Xingfa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lonkey Industrial and Hubei Xingfa.
Diversification Opportunities for Lonkey Industrial and Hubei Xingfa
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Lonkey and Hubei is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Lonkey Industrial Co and Hubei Xingfa Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Xingfa 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 Hubei Xingfa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Xingfa Chemicals has no effect on the direction of Lonkey Industrial i.e., Lonkey Industrial and Hubei Xingfa go up and down completely randomly.
Pair Corralation between Lonkey Industrial and Hubei Xingfa
Assuming the 90 days trading horizon Lonkey Industrial Co is expected to generate 0.99 times more return on investment than Hubei Xingfa. However, Lonkey Industrial Co is 1.01 times less risky than Hubei Xingfa. It trades about 0.2 of its potential returns per unit of risk. Hubei Xingfa Chemicals is currently generating about -0.1 per unit of risk. If you would invest 336.00 in Lonkey Industrial Co on September 13, 2024 and sell it today you would earn a total of 32.00 from holding Lonkey Industrial Co or generate 9.52% 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. Hubei Xingfa Chemicals
Performance |
| Timeline |
| Lonkey Industrial |
| Hubei Xingfa Chemicals |
Lonkey Industrial and Hubei Xingfa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lonkey Industrial and Hubei Xingfa
The main advantage of trading using opposite Lonkey Industrial and Hubei Xingfa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lonkey Industrial position performs unexpectedly, Hubei Xingfa 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 Hubei Xingfa will offset losses from the drop in Hubei Xingfa's long position.| Lonkey Industrial vs. Ming Yang Smart | Lonkey Industrial vs. 159681 | Lonkey Industrial vs. 159005 | Lonkey Industrial vs. Loctek Ergonomic Technology |
| Hubei Xingfa vs. Hainan Mining Co | Hubei Xingfa vs. Wintao Communications Co | Hubei Xingfa vs. Xinjiang Communications Construction | Hubei Xingfa vs. Xinjiang Baodi Mining |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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