Correlation Between Yuan Longping and Lonkey Industrial
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By analyzing existing cross correlation between Yuan Longping High tech and Lonkey Industrial Co, you can compare the effects of market volatilities on Yuan Longping and Lonkey Industrial 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 Yuan Longping with a short position of Lonkey Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuan Longping and Lonkey Industrial.
Diversification Opportunities for Yuan Longping and Lonkey Industrial
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Yuan and Lonkey is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Yuan Longping High tech and Lonkey Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lonkey Industrial and Yuan Longping 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 Yuan Longping High tech are associated (or correlated) with Lonkey Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lonkey Industrial has no effect on the direction of Yuan Longping i.e., Yuan Longping and Lonkey Industrial go up and down completely randomly.
Pair Corralation between Yuan Longping and Lonkey Industrial
Assuming the 90 days trading horizon Yuan Longping is expected to generate 1.57 times less return on investment than Lonkey Industrial. In addition to that, Yuan Longping is 1.08 times more volatile than Lonkey Industrial Co. It trades about 0.05 of its total potential returns per unit of risk. Lonkey Industrial Co is currently generating about 0.08 per unit of volatility. If you would invest 320.00 in Lonkey Industrial Co on September 3, 2024 and sell it today you would earn a total of 10.00 from holding Lonkey Industrial Co or generate 3.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yuan Longping High tech vs. Lonkey Industrial Co
Performance |
| Timeline |
| Yuan Longping High |
| Lonkey Industrial |
Yuan Longping and Lonkey Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuan Longping and Lonkey Industrial
The main advantage of trading using opposite Yuan Longping and Lonkey Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuan Longping position performs unexpectedly, Lonkey Industrial 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 Lonkey Industrial will offset losses from the drop in Lonkey Industrial's long position.| Yuan Longping vs. Beijing Wantai Biological | Yuan Longping vs. Aluminum Corp of | Yuan Longping vs. COL Digital Publishing | Yuan Longping vs. Shaanxi Meineng Clean |
| 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 |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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