Correlation Between Ming Yang and Lonkey Industrial
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By analyzing existing cross correlation between Ming Yang Smart and Lonkey Industrial Co, you can compare the effects of market volatilities on Ming Yang 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 Ming Yang with a short position of Lonkey Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Yang and Lonkey Industrial.
Diversification Opportunities for Ming Yang and Lonkey Industrial
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ming and Lonkey is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Ming Yang Smart and Lonkey Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lonkey Industrial and Ming Yang 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 Ming Yang Smart 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 Ming Yang i.e., Ming Yang and Lonkey Industrial go up and down completely randomly.
Pair Corralation between Ming Yang and Lonkey Industrial
Assuming the 90 days trading horizon Ming Yang is expected to generate 1.1 times less return on investment than Lonkey Industrial. In addition to that, Ming Yang is 1.53 times more volatile than Lonkey Industrial Co. It trades about 0.16 of its total potential returns per unit of risk. Lonkey Industrial Co is currently generating about 0.27 per unit of volatility. If you would invest 328.00 in Lonkey Industrial Co on September 14, 2024 and sell it today you would earn a total of 40.00 from holding Lonkey Industrial Co or generate 12.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ming Yang Smart vs. Lonkey Industrial Co
Performance |
| Timeline |
| Ming Yang Smart |
| Lonkey Industrial |
Ming Yang and Lonkey Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ming Yang and Lonkey Industrial
The main advantage of trading using opposite Ming Yang and Lonkey Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ming Yang 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.| Ming Yang vs. Xilinmen Furniture Co | Ming Yang vs. Jiangxi Hengda Hi Tech | Ming Yang vs. Wintao Communications Co | Ming Yang vs. Zhangjiagang Freetrade Science |
| 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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