Correlation Between Lontium Semiconductor and INKON Life
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By analyzing existing cross correlation between Lontium Semiconductor Corp and INKON Life Technology, you can compare the effects of market volatilities on Lontium Semiconductor and INKON Life 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 Lontium Semiconductor with a short position of INKON Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lontium Semiconductor and INKON Life.
Diversification Opportunities for Lontium Semiconductor and INKON Life
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lontium and INKON is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Lontium Semiconductor Corp and INKON Life Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INKON Life Technology and Lontium Semiconductor 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 Lontium Semiconductor Corp are associated (or correlated) with INKON Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INKON Life Technology has no effect on the direction of Lontium Semiconductor i.e., Lontium Semiconductor and INKON Life go up and down completely randomly.
Pair Corralation between Lontium Semiconductor and INKON Life
Assuming the 90 days trading horizon Lontium Semiconductor Corp is expected to generate 2.77 times more return on investment than INKON Life. However, Lontium Semiconductor is 2.77 times more volatile than INKON Life Technology. It trades about 0.12 of its potential returns per unit of risk. INKON Life Technology is currently generating about -0.26 per unit of risk. If you would invest 7,230 in Lontium Semiconductor Corp on October 12, 2024 and sell it today you would earn a total of 888.00 from holding Lontium Semiconductor Corp or generate 12.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lontium Semiconductor Corp vs. INKON Life Technology
Performance |
| Timeline |
| Lontium Semiconductor |
| INKON Life Technology |
Lontium Semiconductor and INKON Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lontium Semiconductor and INKON Life
The main advantage of trading using opposite Lontium Semiconductor and INKON Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lontium Semiconductor position performs unexpectedly, INKON Life 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 INKON Life will offset losses from the drop in INKON Life's long position.| Lontium Semiconductor vs. Suzhou Weizhixiang Food | Lontium Semiconductor vs. Zhongyin Babi Food | Lontium Semiconductor vs. Xinjiang Tianrun Dairy | Lontium Semiconductor vs. Jiajia Food Group |
| INKON Life vs. Guangzhou Jinyi Media | INKON Life vs. Lontium Semiconductor Corp | INKON Life vs. Shandong Longquan Pipeline | INKON Life vs. Southern PublishingMedia Co |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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