Correlation Between Lonkey Industrial and Liaoning Chengda
Specify exactly 2 symbols:
By analyzing existing cross correlation between Lonkey Industrial Co and Liaoning Chengda Biotechnology, you can compare the effects of market volatilities on Lonkey Industrial and Liaoning Chengda 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 Liaoning Chengda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lonkey Industrial and Liaoning Chengda.
Diversification Opportunities for Lonkey Industrial and Liaoning Chengda
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lonkey and Liaoning is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Lonkey Industrial Co and Liaoning Chengda Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liaoning Chengda Bio 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 Liaoning Chengda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liaoning Chengda Bio has no effect on the direction of Lonkey Industrial i.e., Lonkey Industrial and Liaoning Chengda go up and down completely randomly.
Pair Corralation between Lonkey Industrial and Liaoning Chengda
Assuming the 90 days trading horizon Lonkey Industrial Co is expected to generate 1.08 times more return on investment than Liaoning Chengda. However, Lonkey Industrial is 1.08 times more volatile than Liaoning Chengda Biotechnology. It trades about 0.05 of its potential returns per unit of risk. Liaoning Chengda Biotechnology is currently generating about 0.03 per unit of risk. If you would invest 295.00 in Lonkey Industrial Co on September 3, 2024 and sell it today you would earn a total of 35.00 from holding Lonkey Industrial Co or generate 11.86% 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. Liaoning Chengda Biotechnology
Performance |
| Timeline |
| Lonkey Industrial |
| Liaoning Chengda Bio |
Lonkey Industrial and Liaoning Chengda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lonkey Industrial and Liaoning Chengda
The main advantage of trading using opposite Lonkey Industrial and Liaoning Chengda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lonkey Industrial position performs unexpectedly, Liaoning Chengda 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 Liaoning Chengda will offset losses from the drop in Liaoning Chengda'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 |
| Liaoning Chengda vs. Chengdu Kanghua Biological | Liaoning Chengda vs. Beijing Wantai Biological | Liaoning Chengda vs. Suzhou Novoprotein Scientific | Liaoning Chengda vs. Aluminum Corp of |
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.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |