Correlation Between Lonkey Industrial and Chengtun Mining
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By analyzing existing cross correlation between Lonkey Industrial Co and Chengtun Mining Group, you can compare the effects of market volatilities on Lonkey Industrial and Chengtun Mining 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 Chengtun Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lonkey Industrial and Chengtun Mining.
Diversification Opportunities for Lonkey Industrial and Chengtun Mining
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lonkey and Chengtun is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Lonkey Industrial Co and Chengtun Mining Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengtun Mining Group 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 Chengtun Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengtun Mining Group has no effect on the direction of Lonkey Industrial i.e., Lonkey Industrial and Chengtun Mining go up and down completely randomly.
Pair Corralation between Lonkey Industrial and Chengtun Mining
Assuming the 90 days trading horizon Lonkey Industrial Co is expected to generate 1.08 times more return on investment than Chengtun Mining. However, Lonkey Industrial is 1.08 times more volatile than Chengtun Mining Group. It trades about 0.08 of its potential returns per unit of risk. Chengtun Mining Group is currently generating about -0.13 per unit of risk. If you would invest 320.00 in Lonkey Industrial Co on September 3, 2024 and sell it today you would earn a total of 10.00 from holding Lonkey Industrial Co or generate 3.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lonkey Industrial Co vs. Chengtun Mining Group
Performance |
| Timeline |
| Lonkey Industrial |
| Chengtun Mining Group |
Lonkey Industrial and Chengtun Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lonkey Industrial and Chengtun Mining
The main advantage of trading using opposite Lonkey Industrial and Chengtun Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lonkey Industrial position performs unexpectedly, Chengtun Mining 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 Chengtun Mining will offset losses from the drop in Chengtun Mining'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 |
| Chengtun Mining vs. Zijin Mining Group | Chengtun Mining vs. Baoshan Iron Steel | Chengtun Mining vs. Rongsheng Petrochemical Co | Chengtun Mining vs. Hoshine Silicon Ind |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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