Correlation Between Integrated Electronic and Loctek Ergonomic
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By analyzing existing cross correlation between Integrated Electronic Systems and Loctek Ergonomic Technology, you can compare the effects of market volatilities on Integrated Electronic 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 Integrated Electronic with a short position of Loctek Ergonomic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integrated Electronic and Loctek Ergonomic.
Diversification Opportunities for Integrated Electronic and Loctek Ergonomic
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Integrated and Loctek is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Integrated Electronic Systems 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 Integrated Electronic 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 Integrated Electronic Systems 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 Integrated Electronic i.e., Integrated Electronic and Loctek Ergonomic go up and down completely randomly.
Pair Corralation between Integrated Electronic and Loctek Ergonomic
Assuming the 90 days trading horizon Integrated Electronic Systems is expected to generate 1.08 times more return on investment than Loctek Ergonomic. However, Integrated Electronic is 1.08 times more volatile than Loctek Ergonomic Technology. It trades about 0.02 of its potential returns per unit of risk. Loctek Ergonomic Technology is currently generating about 0.01 per unit of risk. If you would invest 762.00 in Integrated Electronic Systems on August 28, 2024 and sell it today you would earn a total of 15.00 from holding Integrated Electronic Systems or generate 1.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integrated Electronic Systems vs. Loctek Ergonomic Technology
Performance |
| Timeline |
| Integrated Electronic |
| Loctek Ergonomic Tec |
Integrated Electronic and Loctek Ergonomic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integrated Electronic and Loctek Ergonomic
The main advantage of trading using opposite Integrated Electronic and Loctek Ergonomic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integrated Electronic 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.The idea behind Integrated Electronic Systems and Loctek Ergonomic Technology pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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