Correlation Between Lonkey Industrial and Hubei Jumpcan
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By analyzing existing cross correlation between Lonkey Industrial Co and Hubei Jumpcan Pharmaceutical, you can compare the effects of market volatilities on Lonkey Industrial and Hubei Jumpcan 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 Jumpcan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lonkey Industrial and Hubei Jumpcan.
Diversification Opportunities for Lonkey Industrial and Hubei Jumpcan
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lonkey and Hubei is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Lonkey Industrial Co and Hubei Jumpcan Pharmaceutical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Jumpcan Pharma 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 Jumpcan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Jumpcan Pharma has no effect on the direction of Lonkey Industrial i.e., Lonkey Industrial and Hubei Jumpcan go up and down completely randomly.
Pair Corralation between Lonkey Industrial and Hubei Jumpcan
Assuming the 90 days trading horizon Lonkey Industrial Co is expected to generate 0.98 times more return on investment than Hubei Jumpcan. However, Lonkey Industrial Co is 1.02 times less risky than Hubei Jumpcan. It trades about 0.12 of its potential returns per unit of risk. Hubei Jumpcan Pharmaceutical is currently generating about -0.06 per unit of risk. If you would invest 320.00 in Lonkey Industrial Co on September 5, 2024 and sell it today you would earn a total of 17.00 from holding Lonkey Industrial Co or generate 5.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Lonkey Industrial Co vs. Hubei Jumpcan Pharmaceutical
Performance |
| Timeline |
| Lonkey Industrial |
| Hubei Jumpcan Pharma |
Lonkey Industrial and Hubei Jumpcan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lonkey Industrial and Hubei Jumpcan
The main advantage of trading using opposite Lonkey Industrial and Hubei Jumpcan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lonkey Industrial position performs unexpectedly, Hubei Jumpcan 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 Jumpcan will offset losses from the drop in Hubei Jumpcan's long position.| Lonkey Industrial vs. China State Construction | Lonkey Industrial vs. Poly Real Estate | Lonkey Industrial vs. China Vanke Co | Lonkey Industrial vs. China Merchants Shekou |
| Hubei Jumpcan vs. Lonkey Industrial Co | Hubei Jumpcan vs. Gem Year Industrial Co | Hubei Jumpcan vs. Longmaster Information Tech | Hubei Jumpcan vs. Dawning Information Industry |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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