Correlation Between Hubei Huaqiang and Lonkey Industrial
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hubei Huaqiang High Tech and Lonkey Industrial Co, you can compare the effects of market volatilities on Hubei Huaqiang 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 Hubei Huaqiang with a short position of Lonkey Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Huaqiang and Lonkey Industrial.
Diversification Opportunities for Hubei Huaqiang and Lonkey Industrial
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hubei and Lonkey is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Huaqiang High 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 Hubei Huaqiang 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 Hubei Huaqiang High 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 Hubei Huaqiang i.e., Hubei Huaqiang and Lonkey Industrial go up and down completely randomly.
Pair Corralation between Hubei Huaqiang and Lonkey Industrial
Assuming the 90 days trading horizon Hubei Huaqiang High Tech is expected to generate 1.07 times more return on investment than Lonkey Industrial. However, Hubei Huaqiang is 1.07 times more volatile than Lonkey Industrial Co. It trades about 0.09 of its potential returns per unit of risk. Lonkey Industrial Co is currently generating about 0.08 per unit of risk. If you would invest 1,625 in Hubei Huaqiang High Tech on September 3, 2024 and sell it today you would earn a total of 60.00 from holding Hubei Huaqiang High Tech or generate 3.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Huaqiang High Tech vs. Lonkey Industrial Co
Performance |
| Timeline |
| Hubei Huaqiang High |
| Lonkey Industrial |
Hubei Huaqiang and Lonkey Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Huaqiang and Lonkey Industrial
The main advantage of trading using opposite Hubei Huaqiang and Lonkey Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Huaqiang 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.| Hubei Huaqiang vs. Xinjiang Communications Construction | Hubei Huaqiang vs. Zhongtong Guomai Communication | Hubei Huaqiang vs. Zhejiang Publishing Media | Hubei Huaqiang vs. Northern United Publishing |
| 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |