Correlation Between BingEx and Lakeside Holding

Can any of the company-specific risk be diversified away by investing in both BingEx and Lakeside Holding at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining BingEx and Lakeside Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between BingEx and Lakeside Holding Limited, you can compare the effects of market volatilities on BingEx and Lakeside Holding 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 BingEx with a short position of Lakeside Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of BingEx and Lakeside Holding.

Diversification Opportunities for BingEx and Lakeside Holding

-0.14

Correlation Coefficient

BingEx  Lakeside Holding

Good diversification

The 3 months correlation between BingEx and Lakeside is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding BingEx and Lakeside Holding Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lakeside Holding and BingEx 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 BingEx are associated (or correlated) with Lakeside Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lakeside Holding has no effect on the direction of BingEx i.e., BingEx and Lakeside Holding go up and down completely randomly.

Pair Corralation between BingEx and Lakeside Holding

Considering the 90-day investment horizon BingEx is expected to generate 0.68 times more return on investment than Lakeside Holding. However, BingEx is 1.47 times less risky than Lakeside Holding. It trades about -0.02 of its potential returns per unit of risk. Lakeside Holding Limited is currently generating about -0.16 per unit of risk. If you would invest  820.00  in BingEx on December 28, 2024 and sell it today you would lose (95.01) from holding BingEx or give up 11.59% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

BingEx  vs.  Lakeside Holding Limited

BingEx

Risk-Adjusted Performance

Very Weak

Over the last 90 days BingEx has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong essential indicators, BingEx is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Lakeside Holding

Risk-Adjusted Performance

Very Weak

Over the last 90 days Lakeside Holding Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with BingEx and Lakeside Holding

The main advantage of trading using opposite BingEx and Lakeside Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BingEx position performs unexpectedly, Lakeside Holding 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 Lakeside Holding will offset losses from the drop in Lakeside Holding's long position.

The idea behind BingEx and Lakeside Holding Limited pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.