Correlation Between Lonkey Industrial and Bomesc Offshore
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By analyzing existing cross correlation between Lonkey Industrial Co and Bomesc Offshore Engineering, you can compare the effects of market volatilities on Lonkey Industrial and Bomesc Offshore 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 Bomesc Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lonkey Industrial and Bomesc Offshore.
Diversification Opportunities for Lonkey Industrial and Bomesc Offshore
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lonkey and Bomesc is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Lonkey Industrial Co and Bomesc Offshore Engineering in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bomesc Offshore Engi 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 Bomesc Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bomesc Offshore Engi has no effect on the direction of Lonkey Industrial i.e., Lonkey Industrial and Bomesc Offshore go up and down completely randomly.
Pair Corralation between Lonkey Industrial and Bomesc Offshore
Assuming the 90 days trading horizon Lonkey Industrial Co is expected to generate 1.03 times more return on investment than Bomesc Offshore. However, Lonkey Industrial is 1.03 times more volatile than Bomesc Offshore Engineering. It trades about 0.02 of its potential returns per unit of risk. Bomesc Offshore Engineering is currently generating about -0.05 per unit of risk. If you would invest 325.00 in Lonkey Industrial Co on September 3, 2024 and sell it today you would earn a total of 5.00 from holding Lonkey Industrial Co or generate 1.54% 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. Bomesc Offshore Engineering
Performance |
| Timeline |
| Lonkey Industrial |
| Bomesc Offshore Engi |
Lonkey Industrial and Bomesc Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lonkey Industrial and Bomesc Offshore
The main advantage of trading using opposite Lonkey Industrial and Bomesc Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lonkey Industrial position performs unexpectedly, Bomesc Offshore 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 Bomesc Offshore will offset losses from the drop in Bomesc Offshore'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 |
| Bomesc Offshore vs. XinJiang GuoTong Pipeline | Bomesc Offshore vs. Tianshan Aluminum Group | Bomesc Offshore vs. Dymatic Chemicals | Bomesc Offshore vs. Western Metal Materials |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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