Correlation Between Guangzhou Dongfang and Loctek Ergonomic
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By analyzing existing cross correlation between Guangzhou Dongfang Hotel and Loctek Ergonomic Technology, you can compare the effects of market volatilities on Guangzhou Dongfang and Loctek Ergonomic 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 Guangzhou Dongfang with a short position of Loctek Ergonomic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Dongfang and Loctek Ergonomic.
Diversification Opportunities for Guangzhou Dongfang and Loctek Ergonomic
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and Loctek is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Dongfang Hotel and Loctek Ergonomic Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loctek Ergonomic Tec and Guangzhou Dongfang 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 Guangzhou Dongfang Hotel are associated (or correlated) with Loctek Ergonomic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loctek Ergonomic Tec has no effect on the direction of Guangzhou Dongfang i.e., Guangzhou Dongfang and Loctek Ergonomic go up and down completely randomly.
Pair Corralation between Guangzhou Dongfang and Loctek Ergonomic
Assuming the 90 days trading horizon Guangzhou Dongfang Hotel is expected to generate 1.02 times more return on investment than Loctek Ergonomic. However, Guangzhou Dongfang is 1.02 times more volatile than Loctek Ergonomic Technology. It trades about 0.05 of its potential returns per unit of risk. Loctek Ergonomic Technology is currently generating about 0.03 per unit of risk. If you would invest 859.00 in Guangzhou Dongfang Hotel on September 14, 2024 and sell it today you would earn a total of 263.00 from holding Guangzhou Dongfang Hotel or generate 30.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.62% |
| Values | Daily Returns |
Guangzhou Dongfang Hotel vs. Loctek Ergonomic Technology
Performance |
| Timeline |
| Guangzhou Dongfang Hotel |
| Loctek Ergonomic Tec |
Guangzhou Dongfang and Loctek Ergonomic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Dongfang and Loctek Ergonomic
The main advantage of trading using opposite Guangzhou Dongfang and Loctek Ergonomic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Dongfang position performs unexpectedly, Loctek Ergonomic 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 Loctek Ergonomic will offset losses from the drop in Loctek Ergonomic's long position.| Guangzhou Dongfang vs. Ming Yang Smart | Guangzhou Dongfang vs. 159681 | Guangzhou Dongfang vs. 159005 | Guangzhou Dongfang vs. Loctek Ergonomic Technology |
| Loctek Ergonomic vs. Sinosteel Engineering and | Loctek Ergonomic vs. Bengang Steel Plates | Loctek Ergonomic vs. Central Plains Environment | Loctek Ergonomic vs. Guangzhou Dongfang Hotel |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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