Correlation Between Guangdong Advertising and Loctek Ergonomic
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By analyzing existing cross correlation between Guangdong Advertising Co and Loctek Ergonomic Technology, you can compare the effects of market volatilities on Guangdong Advertising 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 Advertising with a short position of Loctek Ergonomic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Advertising and Loctek Ergonomic.
Diversification Opportunities for Guangdong Advertising and Loctek Ergonomic
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Guangdong and Loctek is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Advertising 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 Guangdong Advertising 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 Advertising 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 Guangdong Advertising i.e., Guangdong Advertising and Loctek Ergonomic go up and down completely randomly.
Pair Corralation between Guangdong Advertising and Loctek Ergonomic
Assuming the 90 days trading horizon Guangdong Advertising Co is expected to under-perform the Loctek Ergonomic. In addition to that, Guangdong Advertising is 1.71 times more volatile than Loctek Ergonomic Technology. It trades about -0.02 of its total potential returns per unit of risk. Loctek Ergonomic Technology is currently generating about 0.01 per unit of volatility. If you would invest 1,629 in Loctek Ergonomic Technology on December 1, 2024 and sell it today you would lose (3.00) from holding Loctek Ergonomic Technology or give up 0.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Advertising Co vs. Loctek Ergonomic Technology
Performance |
| Timeline |
| Guangdong Advertising |
| Loctek Ergonomic Tec |
Guangdong Advertising and Loctek Ergonomic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Advertising and Loctek Ergonomic
The main advantage of trading using opposite Guangdong Advertising and Loctek Ergonomic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Advertising 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 Advertising vs. Peoples Insurance of | Guangdong Advertising vs. Hengli Industrial Development | Guangdong Advertising vs. Shanghai Shuixing Home | Guangdong Advertising vs. Beijing Kingsoft Office |
| Loctek Ergonomic vs. YiDong Electronics Technology | Loctek Ergonomic vs. Kunshan Guoli Electronic | Loctek Ergonomic vs. Zhejiang Construction Investment | Loctek Ergonomic vs. Chengdu Xingrong Investment |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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