Correlation Between Lonkey Industrial and Keli Sensing
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By analyzing existing cross correlation between Lonkey Industrial Co and Keli Sensing Technology, you can compare the effects of market volatilities on Lonkey Industrial and Keli Sensing 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 Keli Sensing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lonkey Industrial and Keli Sensing.
Diversification Opportunities for Lonkey Industrial and Keli Sensing
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Lonkey and Keli is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Lonkey Industrial Co and Keli Sensing Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keli Sensing Technology 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 Keli Sensing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keli Sensing Technology has no effect on the direction of Lonkey Industrial i.e., Lonkey Industrial and Keli Sensing go up and down completely randomly.
Pair Corralation between Lonkey Industrial and Keli Sensing
Assuming the 90 days trading horizon Lonkey Industrial is expected to generate 7.43 times less return on investment than Keli Sensing. But when comparing it to its historical volatility, Lonkey Industrial Co is 2.75 times less risky than Keli Sensing. It trades about 0.12 of its potential returns per unit of risk. Keli Sensing Technology is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 3,661 in Keli Sensing Technology on September 4, 2024 and sell it today you would earn a total of 1,699 from holding Keli Sensing Technology or generate 46.41% 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. Keli Sensing Technology
Performance |
| Timeline |
| Lonkey Industrial |
| Keli Sensing Technology |
Lonkey Industrial and Keli Sensing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lonkey Industrial and Keli Sensing
The main advantage of trading using opposite Lonkey Industrial and Keli Sensing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lonkey Industrial position performs unexpectedly, Keli Sensing 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 Keli Sensing will offset losses from the drop in Keli Sensing's long position.| Lonkey Industrial vs. Easyhome New Retail | Lonkey Industrial vs. DO Home Collection | Lonkey Industrial vs. AVIC Fund Management | Lonkey Industrial vs. Huaxia Fund Management |
| Keli Sensing vs. Biwin Storage Technology | Keli Sensing vs. PetroChina Co Ltd | Keli Sensing vs. Industrial and Commercial | Keli Sensing vs. China Construction Bank |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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