Correlation Between Xiandai Investment and Loctek Ergonomic
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By analyzing existing cross correlation between Xiandai Investment Co and Loctek Ergonomic Technology, you can compare the effects of market volatilities on Xiandai Investment 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 Xiandai Investment with a short position of Loctek Ergonomic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiandai Investment and Loctek Ergonomic.
Diversification Opportunities for Xiandai Investment and Loctek Ergonomic
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xiandai and Loctek is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Xiandai Investment 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 Xiandai Investment 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 Xiandai Investment 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 Xiandai Investment i.e., Xiandai Investment and Loctek Ergonomic go up and down completely randomly.
Pair Corralation between Xiandai Investment and Loctek Ergonomic
Assuming the 90 days trading horizon Xiandai Investment is expected to generate 5.19 times less return on investment than Loctek Ergonomic. But when comparing it to its historical volatility, Xiandai Investment Co is 1.92 times less risky than Loctek Ergonomic. It trades about 0.01 of its potential returns per unit of risk. Loctek Ergonomic Technology is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,534 in Loctek Ergonomic Technology on December 7, 2024 and sell it today you would earn a total of 190.00 from holding Loctek Ergonomic Technology or generate 12.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiandai Investment Co vs. Loctek Ergonomic Technology
Performance |
| Timeline |
| Xiandai Investment |
| Loctek Ergonomic Tec |
Xiandai Investment and Loctek Ergonomic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiandai Investment and Loctek Ergonomic
The main advantage of trading using opposite Xiandai Investment and Loctek Ergonomic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiandai Investment 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.| Xiandai Investment vs. Western Metal Materials | Xiandai Investment vs. Northking Information Technology | Xiandai Investment vs. China Aluminum International | Xiandai Investment vs. Biwin Storage Technology |
| Loctek Ergonomic vs. Queclink Wireless Solutions | Loctek Ergonomic vs. Heilongjiang Transport Development | Loctek Ergonomic vs. MayAir Technology Co | Loctek Ergonomic vs. Harbin Air Conditioning |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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