Correlation Between Lonkey Industrial and China State
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By analyzing existing cross correlation between Lonkey Industrial Co and China State Construction, you can compare the effects of market volatilities on Lonkey Industrial and China State 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 China State. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lonkey Industrial and China State.
Diversification Opportunities for Lonkey Industrial and China State
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lonkey and China is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Lonkey Industrial Co and China State Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China State Construction 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 China State. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China State Construction has no effect on the direction of Lonkey Industrial i.e., Lonkey Industrial and China State go up and down completely randomly.
Pair Corralation between Lonkey Industrial and China State
Assuming the 90 days trading horizon Lonkey Industrial Co is expected to generate 1.03 times more return on investment than China State. However, Lonkey Industrial is 1.03 times more volatile than China State Construction. It trades about 0.07 of its potential returns per unit of risk. China State Construction is currently generating about 0.04 per unit of risk. If you would invest 285.00 in Lonkey Industrial Co on September 5, 2024 and sell it today you would earn a total of 52.00 from holding Lonkey Industrial Co or generate 18.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.17% |
| Values | Daily Returns |
Lonkey Industrial Co vs. China State Construction
Performance |
| Timeline |
| Lonkey Industrial |
| China State Construction |
Lonkey Industrial and China State Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lonkey Industrial and China State
The main advantage of trading using opposite Lonkey Industrial and China State positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lonkey Industrial position performs unexpectedly, China State 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 China State will offset losses from the drop in China State'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 |
| China State vs. HaiXin Foods Co | China State vs. Zhejiang Yayi Metal | China State vs. V V Food | China State vs. Youyou Foods Co |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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