Correlation Between Huaxia Fund and Lonkey Industrial
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By analyzing existing cross correlation between Huaxia Fund Management and Lonkey Industrial Co, you can compare the effects of market volatilities on Huaxia Fund 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 Huaxia Fund with a short position of Lonkey Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huaxia Fund and Lonkey Industrial.
Diversification Opportunities for Huaxia Fund and Lonkey Industrial
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Huaxia and Lonkey is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Huaxia Fund Management and Lonkey Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lonkey Industrial and Huaxia Fund 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 Huaxia Fund Management 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 Huaxia Fund i.e., Huaxia Fund and Lonkey Industrial go up and down completely randomly.
Pair Corralation between Huaxia Fund and Lonkey Industrial
Assuming the 90 days trading horizon Huaxia Fund is expected to generate 1.49 times less return on investment than Lonkey Industrial. But when comparing it to its historical volatility, Huaxia Fund Management is 3.01 times less risky than Lonkey Industrial. It trades about 0.03 of its potential returns per unit of risk. Lonkey Industrial Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 325.00 in Lonkey Industrial Co on September 3, 2024 and sell it today you would earn a total of 5.00 from holding Lonkey Industrial Co or generate 1.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huaxia Fund Management vs. Lonkey Industrial Co
Performance |
| Timeline |
| Huaxia Fund Management |
| Lonkey Industrial |
Huaxia Fund and Lonkey Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huaxia Fund and Lonkey Industrial
The main advantage of trading using opposite Huaxia Fund and Lonkey Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huaxia Fund 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.| Huaxia Fund vs. Industrial and Commercial | Huaxia Fund vs. Kweichow Moutai Co | Huaxia Fund vs. Agricultural Bank of | Huaxia Fund vs. China Mobile Limited |
| 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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