Correlation Between Westone Information and Loctek Ergonomic
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By analyzing existing cross correlation between Westone Information Industry and Loctek Ergonomic Technology, you can compare the effects of market volatilities on Westone 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 Westone Information with a short position of Loctek Ergonomic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Westone Information and Loctek Ergonomic.
Diversification Opportunities for Westone Information and Loctek Ergonomic
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Westone and Loctek is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Westone Information Industry 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 Westone 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 Westone Information Industry 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 Westone Information i.e., Westone Information and Loctek Ergonomic go up and down completely randomly.
Pair Corralation between Westone Information and Loctek Ergonomic
Assuming the 90 days trading horizon Westone Information Industry is expected to generate 1.16 times more return on investment than Loctek Ergonomic. However, Westone Information is 1.16 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 1,552 in Westone Information Industry on August 31, 2024 and sell it today you would earn a total of 245.00 from holding Westone Information Industry or generate 15.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Westone Information Industry vs. Loctek Ergonomic Technology
Performance |
| Timeline |
| Westone Information |
| Loctek Ergonomic Tec |
Westone Information and Loctek Ergonomic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Westone Information and Loctek Ergonomic
The main advantage of trading using opposite Westone Information and Loctek Ergonomic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Westone 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.| Westone Information vs. Shanghai Material Trading | Westone Information vs. Pengxin International Mining | Westone Information vs. Xinjiang Baodi Mining | Westone Information vs. Kunwu Jiuding Investment |
| 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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