Correlation Between Lonkey Industrial and Oppein Home
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By analyzing existing cross correlation between Lonkey Industrial Co and Oppein Home Group, you can compare the effects of market volatilities on Lonkey Industrial and Oppein Home 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 Oppein Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lonkey Industrial and Oppein Home.
Diversification Opportunities for Lonkey Industrial and Oppein Home
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lonkey and Oppein is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Lonkey Industrial Co and Oppein Home Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppein Home 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 Oppein Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppein Home Group has no effect on the direction of Lonkey Industrial i.e., Lonkey Industrial and Oppein Home go up and down completely randomly.
Pair Corralation between Lonkey Industrial and Oppein Home
Assuming the 90 days trading horizon Lonkey Industrial is expected to generate 1.03 times less return on investment than Oppein Home. But when comparing it to its historical volatility, Lonkey Industrial Co is 1.09 times less risky than Oppein Home. It trades about 0.14 of its potential returns per unit of risk. Oppein Home Group is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 6,629 in Oppein Home Group on September 20, 2024 and sell it today you would earn a total of 490.00 from holding Oppein Home Group or generate 7.39% 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. Oppein Home Group
Performance |
| Timeline |
| Lonkey Industrial |
| Oppein Home Group |
Lonkey Industrial and Oppein Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lonkey Industrial and Oppein Home
The main advantage of trading using opposite Lonkey Industrial and Oppein Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lonkey Industrial position performs unexpectedly, Oppein Home 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 Oppein Home will offset losses from the drop in Oppein Home's long position.| Lonkey Industrial vs. Ming Yang Smart | Lonkey Industrial vs. 159681 | Lonkey Industrial vs. 159005 | Lonkey Industrial vs. Loctek Ergonomic Technology |
| Oppein Home vs. Dazhong Transportation Group | Oppein Home vs. Fuzhou Rockchip Electronics | Oppein Home vs. Sihui Fuji Electronics | Oppein Home vs. Dymatic Chemicals |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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