Correlation Between Lonkey Industrial and Gem Year
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By analyzing existing cross correlation between Lonkey Industrial Co and Gem Year Industrial Co, you can compare the effects of market volatilities on Lonkey Industrial and Gem Year 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 Lonkey Industrial with a short position of Gem Year. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lonkey Industrial and Gem Year.
Diversification Opportunities for Lonkey Industrial and Gem Year
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lonkey and Gem is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Lonkey Industrial Co and Gem Year Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gem Year Industrial and Lonkey Industrial 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 Lonkey Industrial Co are associated (or correlated) with Gem Year. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gem Year Industrial has no effect on the direction of Lonkey Industrial i.e., Lonkey Industrial and Gem Year go up and down completely randomly.
Pair Corralation between Lonkey Industrial and Gem Year
Assuming the 90 days trading horizon Lonkey Industrial Co is expected to generate 1.32 times more return on investment than Gem Year. However, Lonkey Industrial is 1.32 times more volatile than Gem Year Industrial Co. It trades about 0.14 of its potential returns per unit of risk. Gem Year Industrial Co is currently generating about 0.05 per unit of risk. If you would invest 316.00 in Lonkey Industrial Co on September 20, 2024 and sell it today you would earn a total of 23.00 from holding Lonkey Industrial Co or generate 7.28% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Lonkey Industrial Co vs. Gem Year Industrial Co
Performance |
Timeline |
Lonkey Industrial |
Gem Year Industrial |
Lonkey Industrial and Gem Year Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lonkey Industrial and Gem Year
The main advantage of trading using opposite Lonkey Industrial and Gem Year positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lonkey Industrial position performs unexpectedly, Gem Year 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 Gem Year will offset losses from the drop in Gem Year's long position.Lonkey Industrial vs. Ming Yang Smart | Lonkey Industrial vs. 159681 | Lonkey Industrial vs. 159005 | Lonkey Industrial vs. Loctek Ergonomic Technology |
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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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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