Correlation Between Bus Online and Loctek Ergonomic
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By analyzing existing cross correlation between Bus Online Co and Loctek Ergonomic Technology, you can compare the effects of market volatilities on Bus Online 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 Bus Online with a short position of Loctek Ergonomic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bus Online and Loctek Ergonomic.
Diversification Opportunities for Bus Online and Loctek Ergonomic
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bus and Loctek is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Bus Online 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 Bus Online 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 Bus Online 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 Bus Online i.e., Bus Online and Loctek Ergonomic go up and down completely randomly.
Pair Corralation between Bus Online and Loctek Ergonomic
Assuming the 90 days trading horizon Bus Online Co is expected to generate 0.85 times more return on investment than Loctek Ergonomic. However, Bus Online Co is 1.17 times less risky than Loctek Ergonomic. It trades about 0.17 of its potential returns per unit of risk. Loctek Ergonomic Technology is currently generating about 0.06 per unit of risk. If you would invest 505.00 in Bus Online Co on September 13, 2024 and sell it today you would earn a total of 40.00 from holding Bus Online Co or generate 7.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bus Online Co vs. Loctek Ergonomic Technology
Performance |
| Timeline |
| Bus Online |
| Loctek Ergonomic Tec |
Bus Online and Loctek Ergonomic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bus Online and Loctek Ergonomic
The main advantage of trading using opposite Bus Online and Loctek Ergonomic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bus Online 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.| Bus Online vs. Haima Automobile Group | Bus Online vs. BTG Hotels Group | Bus Online vs. Dongfeng Automobile Co | Bus Online vs. Changchun Faway Automobile |
| Loctek Ergonomic vs. Yuan Longping High tech | Loctek Ergonomic vs. Jinhe Biotechnology Co | Loctek Ergonomic vs. Bus Online Co | Loctek Ergonomic vs. Haima Automobile Group |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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