Correlation Between Guocheng Mining and Loctek Ergonomic
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By analyzing existing cross correlation between Guocheng Mining Co and Loctek Ergonomic Technology, you can compare the effects of market volatilities on Guocheng Mining 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 Guocheng Mining with a short position of Loctek Ergonomic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guocheng Mining and Loctek Ergonomic.
Diversification Opportunities for Guocheng Mining and Loctek Ergonomic
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guocheng and Loctek is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Guocheng Mining Co 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 Guocheng Mining 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 Guocheng Mining Co 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 Guocheng Mining i.e., Guocheng Mining and Loctek Ergonomic go up and down completely randomly.
Pair Corralation between Guocheng Mining and Loctek Ergonomic
Assuming the 90 days trading horizon Guocheng Mining Co is expected to generate 1.17 times more return on investment than Loctek Ergonomic. However, Guocheng Mining is 1.17 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 0.04 per unit of risk. If you would invest 1,244 in Guocheng Mining Co on August 31, 2024 and sell it today you would earn a total of 167.00 from holding Guocheng Mining Co or generate 13.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guocheng Mining Co vs. Loctek Ergonomic Technology
Performance |
| Timeline |
| Guocheng Mining |
| Loctek Ergonomic Tec |
Guocheng Mining and Loctek Ergonomic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guocheng Mining and Loctek Ergonomic
The main advantage of trading using opposite Guocheng Mining and Loctek Ergonomic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guocheng Mining 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.| Guocheng Mining vs. Cultural Investment Holdings | Guocheng Mining vs. Gome Telecom Equipment | Guocheng Mining vs. Bus Online Co | Guocheng Mining vs. Holitech Technology Co |
| Loctek Ergonomic vs. Union Semiconductor Co | Loctek Ergonomic vs. Jinhui Mining Co | Loctek Ergonomic vs. Fujian Oriental Silver | Loctek Ergonomic vs. Southchip Semiconductor Technology |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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