Correlation Between Shijiazhuang Yiling and Lonkey Industrial
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By analyzing existing cross correlation between Shijiazhuang Yiling Pharmaceutical and Lonkey Industrial Co, you can compare the effects of market volatilities on Shijiazhuang Yiling 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 Shijiazhuang Yiling with a short position of Lonkey Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shijiazhuang Yiling and Lonkey Industrial.
Diversification Opportunities for Shijiazhuang Yiling and Lonkey Industrial
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shijiazhuang and Lonkey is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Shijiazhuang Yiling Pharmaceut and Lonkey Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lonkey Industrial and Shijiazhuang Yiling 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 Shijiazhuang Yiling Pharmaceutical 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 Shijiazhuang Yiling i.e., Shijiazhuang Yiling and Lonkey Industrial go up and down completely randomly.
Pair Corralation between Shijiazhuang Yiling and Lonkey Industrial
Assuming the 90 days trading horizon Shijiazhuang Yiling Pharmaceutical is expected to under-perform the Lonkey Industrial. In addition to that, Shijiazhuang Yiling is 1.63 times more volatile than Lonkey Industrial Co. It trades about -0.19 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 305.00 in Lonkey Industrial Co on November 3, 2024 and sell it today you would lose (11.00) from holding Lonkey Industrial Co or give up 3.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shijiazhuang Yiling Pharmaceut vs. Lonkey Industrial Co
Performance |
| Timeline |
| Shijiazhuang Yiling |
| Lonkey Industrial |
Shijiazhuang Yiling and Lonkey Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shijiazhuang Yiling and Lonkey Industrial
The main advantage of trading using opposite Shijiazhuang Yiling and Lonkey Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shijiazhuang Yiling 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.The idea behind Shijiazhuang Yiling Pharmaceutical and Lonkey Industrial Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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