Correlation Between Haima Automobile and Loctek Ergonomic
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By analyzing existing cross correlation between Haima Automobile Group and Loctek Ergonomic Technology, you can compare the effects of market volatilities on Haima Automobile 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 Haima Automobile with a short position of Loctek Ergonomic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haima Automobile and Loctek Ergonomic.
Diversification Opportunities for Haima Automobile and Loctek Ergonomic
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Haima and Loctek is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Haima Automobile Group 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 Haima Automobile 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 Haima Automobile Group 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 Haima Automobile i.e., Haima Automobile and Loctek Ergonomic go up and down completely randomly.
Pair Corralation between Haima Automobile and Loctek Ergonomic
Assuming the 90 days trading horizon Haima Automobile is expected to generate 2.09 times less return on investment than Loctek Ergonomic. In addition to that, Haima Automobile is 1.17 times more volatile than Loctek Ergonomic Technology. It trades about 0.02 of its total potential returns per unit of risk. Loctek Ergonomic Technology is currently generating about 0.04 per unit of volatility. If you would invest 1,214 in Loctek Ergonomic Technology on September 14, 2024 and sell it today you would earn a total of 552.00 from holding Loctek Ergonomic Technology or generate 45.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haima Automobile Group vs. Loctek Ergonomic Technology
Performance |
| Timeline |
| Haima Automobile |
| Loctek Ergonomic Tec |
Haima Automobile and Loctek Ergonomic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haima Automobile and Loctek Ergonomic
The main advantage of trading using opposite Haima Automobile and Loctek Ergonomic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haima Automobile 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.| Haima Automobile vs. Cambricon Technologies Corp | Haima Automobile vs. Loongson Technology Corp | Haima Automobile vs. Shenzhen Fortune Trend | Haima Automobile vs. Chongqing Road Bridge |
| 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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