Correlation Between Guangzhou Boji and Lonkey Industrial
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By analyzing existing cross correlation between Guangzhou Boji Medical and Lonkey Industrial Co, you can compare the effects of market volatilities on Guangzhou Boji 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 Guangzhou Boji with a short position of Lonkey Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Boji and Lonkey Industrial.
Diversification Opportunities for Guangzhou Boji and Lonkey Industrial
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and Lonkey is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Boji Medical and Lonkey Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lonkey Industrial and Guangzhou Boji 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 Guangzhou Boji Medical 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 Guangzhou Boji i.e., Guangzhou Boji and Lonkey Industrial go up and down completely randomly.
Pair Corralation between Guangzhou Boji and Lonkey Industrial
Assuming the 90 days trading horizon Guangzhou Boji Medical is expected to generate 1.51 times more return on investment than Lonkey Industrial. However, Guangzhou Boji is 1.51 times more volatile than Lonkey Industrial Co. It trades about 0.01 of its potential returns per unit of risk. Lonkey Industrial Co is currently generating about -0.01 per unit of risk. If you would invest 855.00 in Guangzhou Boji Medical on November 2, 2024 and sell it today you would lose (21.00) from holding Guangzhou Boji Medical or give up 2.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Boji Medical vs. Lonkey Industrial Co
Performance |
| Timeline |
| Guangzhou Boji Medical |
| Lonkey Industrial |
Guangzhou Boji and Lonkey Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Boji and Lonkey Industrial
The main advantage of trading using opposite Guangzhou Boji and Lonkey Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Boji 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.| Guangzhou Boji vs. 360 Security Technology | Guangzhou Boji vs. Shanghai Yanpu Metal | Guangzhou Boji vs. China Aluminum International | Guangzhou Boji vs. Ye Chiu Metal |
| Lonkey Industrial vs. Hongrun Construction Group | Lonkey Industrial vs. Qijing Machinery | Lonkey Industrial vs. Nuode Investment Co | Lonkey Industrial vs. Hangzhou Zhongya Machinery |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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