Correlation Between Xizi Clean and Lonkey Industrial
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xizi Clean Energy and Lonkey Industrial Co, you can compare the effects of market volatilities on Xizi Clean 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 Xizi Clean with a short position of Lonkey Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xizi Clean and Lonkey Industrial.
Diversification Opportunities for Xizi Clean and Lonkey Industrial
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xizi and Lonkey is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Xizi Clean Energy and Lonkey Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lonkey Industrial and Xizi Clean 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 Xizi Clean Energy 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 Xizi Clean i.e., Xizi Clean and Lonkey Industrial go up and down completely randomly.
Pair Corralation between Xizi Clean and Lonkey Industrial
Assuming the 90 days trading horizon Xizi Clean is expected to generate 1.4 times less return on investment than Lonkey Industrial. But when comparing it to its historical volatility, Xizi Clean Energy is 1.14 times less risky than Lonkey Industrial. It trades about 0.1 of its potential returns per unit of risk. Lonkey Industrial Co is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 265.00 in Lonkey Industrial Co on September 25, 2024 and sell it today you would earn a total of 57.00 from holding Lonkey Industrial Co or generate 21.51% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Xizi Clean Energy vs. Lonkey Industrial Co
Performance |
Timeline |
Xizi Clean Energy |
Lonkey Industrial |
Xizi Clean and Lonkey Industrial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xizi Clean and Lonkey Industrial
The main advantage of trading using opposite Xizi Clean and Lonkey Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xizi Clean 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.Xizi Clean vs. Bank of China | Xizi Clean vs. Kweichow Moutai Co | Xizi Clean vs. PetroChina Co Ltd | Xizi Clean vs. Bank of Communications |
Lonkey Industrial vs. CSSC Offshore Marine | Lonkey Industrial vs. Uroica Mining Safety | Lonkey Industrial vs. Fiberhome Telecommunication Technologies | Lonkey Industrial vs. Anhui Gujing Distillery |
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.
Other Complementary Tools
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |