Correlation Between Guangdong Jingyi and Loctek Ergonomic
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By analyzing existing cross correlation between Guangdong Jingyi Metal and Loctek Ergonomic Technology, you can compare the effects of market volatilities on Guangdong Jingyi 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 Guangdong Jingyi with a short position of Loctek Ergonomic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and Loctek Ergonomic.
Diversification Opportunities for Guangdong Jingyi and Loctek Ergonomic
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangdong and Loctek is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal 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 Guangdong Jingyi 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 Guangdong Jingyi Metal 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 Guangdong Jingyi i.e., Guangdong Jingyi and Loctek Ergonomic go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and Loctek Ergonomic
Assuming the 90 days trading horizon Guangdong Jingyi Metal is expected to generate 0.97 times more return on investment than Loctek Ergonomic. However, Guangdong Jingyi Metal is 1.04 times less risky than Loctek Ergonomic. It trades about 0.09 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 583.00 in Guangdong Jingyi Metal on August 31, 2024 and sell it today you would earn a total of 153.00 from holding Guangdong Jingyi Metal or generate 26.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Jingyi Metal vs. Loctek Ergonomic Technology
Performance |
| Timeline |
| Guangdong Jingyi Metal |
| Loctek Ergonomic Tec |
Guangdong Jingyi and Loctek Ergonomic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jingyi and Loctek Ergonomic
The main advantage of trading using opposite Guangdong Jingyi and Loctek Ergonomic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi 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.| Guangdong Jingyi vs. Fuda Alloy Materials | Guangdong Jingyi vs. Malion New Materials | Guangdong Jingyi vs. Shenzhen Glory Medical | Guangdong Jingyi vs. King Strong New Material |
| 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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