Correlation Between Lonkey Industrial and Hubei Huaqiang
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By analyzing existing cross correlation between Lonkey Industrial Co and Hubei Huaqiang High Tech, you can compare the effects of market volatilities on Lonkey Industrial and Hubei Huaqiang 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 Hubei Huaqiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lonkey Industrial and Hubei Huaqiang.
Diversification Opportunities for Lonkey Industrial and Hubei Huaqiang
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lonkey and Hubei is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Lonkey Industrial Co and Hubei Huaqiang High Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Huaqiang High 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 Hubei Huaqiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Huaqiang High has no effect on the direction of Lonkey Industrial i.e., Lonkey Industrial and Hubei Huaqiang go up and down completely randomly.
Pair Corralation between Lonkey Industrial and Hubei Huaqiang
Assuming the 90 days trading horizon Lonkey Industrial Co is expected to generate 0.95 times more return on investment than Hubei Huaqiang. However, Lonkey Industrial Co is 1.05 times less risky than Hubei Huaqiang. It trades about 0.12 of its potential returns per unit of risk. Hubei Huaqiang High Tech is currently generating about 0.11 per unit of risk. If you would invest 320.00 in Lonkey Industrial Co on September 4, 2024 and sell it today you would earn a total of 17.00 from holding Lonkey Industrial Co or generate 5.31% 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. Hubei Huaqiang High Tech
Performance |
| Timeline |
| Lonkey Industrial |
| Hubei Huaqiang High |
Lonkey Industrial and Hubei Huaqiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lonkey Industrial and Hubei Huaqiang
The main advantage of trading using opposite Lonkey Industrial and Hubei Huaqiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lonkey Industrial position performs unexpectedly, Hubei Huaqiang 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 Hubei Huaqiang will offset losses from the drop in Hubei Huaqiang'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 |
| Hubei Huaqiang vs. BTG Hotels Group | Hubei Huaqiang vs. Xiangtan Electrochemical Scientific | Hubei Huaqiang vs. Jiangsu Jinling Sports | Hubei Huaqiang vs. Harbin Air Conditioning |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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