Correlation Between Hunan Nanling and Loctek Ergonomic
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By analyzing existing cross correlation between Hunan Nanling Industrial and Loctek Ergonomic Technology, you can compare the effects of market volatilities on Hunan Nanling 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 Hunan Nanling with a short position of Loctek Ergonomic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Nanling and Loctek Ergonomic.
Diversification Opportunities for Hunan Nanling and Loctek Ergonomic
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hunan and Loctek is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Nanling Industrial 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 Hunan Nanling 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 Hunan Nanling Industrial 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 Hunan Nanling i.e., Hunan Nanling and Loctek Ergonomic go up and down completely randomly.
Pair Corralation between Hunan Nanling and Loctek Ergonomic
Assuming the 90 days trading horizon Hunan Nanling Industrial is expected to under-perform the Loctek Ergonomic. But the stock apears to be less risky and, when comparing its historical volatility, Hunan Nanling Industrial is 1.43 times less risky than Loctek Ergonomic. The stock trades about -0.39 of its potential returns per unit of risk. The Loctek Ergonomic Technology is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,530 in Loctek Ergonomic Technology on November 3, 2024 and sell it today you would earn a total of 32.00 from holding Loctek Ergonomic Technology or generate 2.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Nanling Industrial vs. Loctek Ergonomic Technology
Performance |
| Timeline |
| Hunan Nanling Industrial |
| Loctek Ergonomic Tec |
Hunan Nanling and Loctek Ergonomic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Nanling and Loctek Ergonomic
The main advantage of trading using opposite Hunan Nanling and Loctek Ergonomic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Nanling 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.| Hunan Nanling vs. Shandong Polymer Biochemicals | Hunan Nanling vs. Easyhome New Retail | Hunan Nanling vs. Luolai Home Textile | Hunan Nanling vs. Do Fluoride Chemicals Co |
| Loctek Ergonomic vs. Youyou Foods Co | Loctek Ergonomic vs. Senci Electric Machinery | Loctek Ergonomic vs. V V Food | Loctek Ergonomic vs. Yankershop Food Co |
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 Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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