Correlation Between Shanghai Zhangjiang and Lonkey Industrial
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By analyzing existing cross correlation between Shanghai Zhangjiang Hi Tech and Lonkey Industrial Co, you can compare the effects of market volatilities on Shanghai Zhangjiang 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 Shanghai Zhangjiang with a short position of Lonkey Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Zhangjiang and Lonkey Industrial.
Diversification Opportunities for Shanghai Zhangjiang and Lonkey Industrial
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shanghai and Lonkey is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Zhangjiang Hi 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 Shanghai Zhangjiang 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 Shanghai Zhangjiang Hi 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 Shanghai Zhangjiang i.e., Shanghai Zhangjiang and Lonkey Industrial go up and down completely randomly.
Pair Corralation between Shanghai Zhangjiang and Lonkey Industrial
Assuming the 90 days trading horizon Shanghai Zhangjiang Hi Tech is expected to under-perform the Lonkey Industrial. But the stock apears to be less risky and, when comparing its historical volatility, Shanghai Zhangjiang Hi Tech is 1.02 times less risky than Lonkey Industrial. The stock trades about -0.13 of its potential returns per unit of risk. The Lonkey Industrial Co is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 314.00 in Lonkey Industrial Co on September 19, 2024 and sell it today you would earn a total of 27.00 from holding Lonkey Industrial Co or generate 8.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Zhangjiang Hi Tech vs. Lonkey Industrial Co
Performance |
| Timeline |
| Shanghai Zhangjiang |
| Lonkey Industrial |
Shanghai Zhangjiang and Lonkey Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Zhangjiang and Lonkey Industrial
The main advantage of trading using opposite Shanghai Zhangjiang and Lonkey Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Zhangjiang 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.| Shanghai Zhangjiang vs. China Life Insurance | Shanghai Zhangjiang vs. Cinda Securities Co | Shanghai Zhangjiang vs. Piotech Inc A | Shanghai Zhangjiang vs. Dongxing Sec Co |
| Lonkey Industrial vs. Ming Yang Smart | Lonkey Industrial vs. 159681 | Lonkey Industrial vs. 159005 | Lonkey Industrial vs. Loctek Ergonomic Technology |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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