Correlation Between Zhejiang Kingland and Loctek Ergonomic
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By analyzing existing cross correlation between Zhejiang Kingland Pipeline and Loctek Ergonomic Technology, you can compare the effects of market volatilities on Zhejiang Kingland 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 Zhejiang Kingland with a short position of Loctek Ergonomic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Kingland and Loctek Ergonomic.
Diversification Opportunities for Zhejiang Kingland and Loctek Ergonomic
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhejiang and Loctek is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Kingland Pipeline 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 Zhejiang Kingland 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 Zhejiang Kingland Pipeline 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 Zhejiang Kingland i.e., Zhejiang Kingland and Loctek Ergonomic go up and down completely randomly.
Pair Corralation between Zhejiang Kingland and Loctek Ergonomic
Assuming the 90 days trading horizon Zhejiang Kingland Pipeline is expected to under-perform the Loctek Ergonomic. But the stock apears to be less risky and, when comparing its historical volatility, Zhejiang Kingland Pipeline is 1.63 times less risky than Loctek Ergonomic. The stock trades about -0.05 of its potential returns per unit of risk. The Loctek Ergonomic Technology is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,608 in Loctek Ergonomic Technology on September 19, 2024 and sell it today you would lose (12.00) from holding Loctek Ergonomic Technology or give up 0.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Kingland Pipeline vs. Loctek Ergonomic Technology
Performance |
| Timeline |
| Zhejiang Kingland |
| Loctek Ergonomic Tec |
Zhejiang Kingland and Loctek Ergonomic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Kingland and Loctek Ergonomic
The main advantage of trading using opposite Zhejiang Kingland and Loctek Ergonomic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Kingland 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.| Zhejiang Kingland vs. Jiangsu Zhongtian Technology | Zhejiang Kingland vs. Andon Health Co | Zhejiang Kingland vs. CITIC Securities Co | Zhejiang Kingland vs. Zoy Home Furnishing |
| Loctek Ergonomic vs. Luyin Investment Group | Loctek Ergonomic vs. Jointo Energy Investment | Loctek Ergonomic vs. Xiandai Investment Co | Loctek Ergonomic vs. Guangdong Shenglu Telecommunication |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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