Correlation Between ZJBC Information and Loctek Ergonomic
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By analyzing existing cross correlation between ZJBC Information Technology and Loctek Ergonomic Technology, you can compare the effects of market volatilities on ZJBC Information 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 ZJBC Information with a short position of Loctek Ergonomic. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZJBC Information and Loctek Ergonomic.
Diversification Opportunities for ZJBC Information and Loctek Ergonomic
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ZJBC and Loctek is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding ZJBC Information Technology 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 ZJBC Information 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 ZJBC Information Technology 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 ZJBC Information i.e., ZJBC Information and Loctek Ergonomic go up and down completely randomly.
Pair Corralation between ZJBC Information and Loctek Ergonomic
Assuming the 90 days trading horizon ZJBC Information Technology is expected to generate 1.56 times more return on investment than Loctek Ergonomic. However, ZJBC Information is 1.56 times more volatile than Loctek Ergonomic Technology. It trades about 0.2 of its potential returns per unit of risk. Loctek Ergonomic Technology is currently generating about -0.22 per unit of risk. If you would invest 220.00 in ZJBC Information Technology on September 28, 2024 and sell it today you would earn a total of 34.00 from holding ZJBC Information Technology or generate 15.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ZJBC Information Technology vs. Loctek Ergonomic Technology
Performance |
| Timeline |
| ZJBC Information Tec |
| Loctek Ergonomic Tec |
ZJBC Information and Loctek Ergonomic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZJBC Information and Loctek Ergonomic
The main advantage of trading using opposite ZJBC Information and Loctek Ergonomic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZJBC Information 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.| ZJBC Information vs. Industrial and Commercial | ZJBC Information vs. Agricultural Bank of | ZJBC Information vs. China Construction Bank | ZJBC Information vs. Bank of China |
| Loctek Ergonomic vs. AVCON Information Tech | Loctek Ergonomic vs. ZJBC Information Technology | Loctek Ergonomic vs. Pengxin International Mining | Loctek Ergonomic vs. Longmaster Information Tech |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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