Correlation Between Lonkey Industrial and Ye Chiu
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By analyzing existing cross correlation between Lonkey Industrial Co and Ye Chiu Metal, you can compare the effects of market volatilities on Lonkey Industrial and Ye Chiu 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 Ye Chiu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lonkey Industrial and Ye Chiu.
Diversification Opportunities for Lonkey Industrial and Ye Chiu
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lonkey and 601388 is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Lonkey Industrial Co and Ye Chiu Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ye Chiu Metal 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 Ye Chiu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ye Chiu Metal has no effect on the direction of Lonkey Industrial i.e., Lonkey Industrial and Ye Chiu go up and down completely randomly.
Pair Corralation between Lonkey Industrial and Ye Chiu
Assuming the 90 days trading horizon Lonkey Industrial Co is expected to generate 1.03 times more return on investment than Ye Chiu. However, Lonkey Industrial is 1.03 times more volatile than Ye Chiu Metal. It trades about 0.02 of its potential returns per unit of risk. Ye Chiu Metal is currently generating about -0.02 per unit of risk. If you would invest 284.00 in Lonkey Industrial Co on October 10, 2024 and sell it today you would earn a total of 4.00 from holding Lonkey Industrial Co or generate 1.41% 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. Ye Chiu Metal
Performance |
Timeline |
Lonkey Industrial |
Ye Chiu Metal |
Lonkey Industrial and Ye Chiu Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lonkey Industrial and Ye Chiu
The main advantage of trading using opposite Lonkey Industrial and Ye Chiu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lonkey Industrial position performs unexpectedly, Ye Chiu 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 Ye Chiu will offset losses from the drop in Ye Chiu's long position.Lonkey Industrial vs. Xiangyang Automobile Bearing | Lonkey Industrial vs. Zoje Resources Investment | Lonkey Industrial vs. Dongfeng Automobile Co | Lonkey Industrial vs. Harbin Hatou Investment |
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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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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