Correlation Between Guangdong Shenglu and Loctek Ergonomic
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By analyzing existing cross correlation between Guangdong Shenglu Telecommunication and Loctek Ergonomic Technology, you can compare the effects of market volatilities on Guangdong Shenglu 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 Shenglu with a short position of Loctek Ergonomic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Shenglu and Loctek Ergonomic.
Diversification Opportunities for Guangdong Shenglu and Loctek Ergonomic
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Loctek is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Shenglu Telecommunic 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 Shenglu 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 Shenglu Telecommunication 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 Shenglu i.e., Guangdong Shenglu and Loctek Ergonomic go up and down completely randomly.
Pair Corralation between Guangdong Shenglu and Loctek Ergonomic
Assuming the 90 days trading horizon Guangdong Shenglu Telecommunication is expected to generate 1.09 times more return on investment than Loctek Ergonomic. However, Guangdong Shenglu is 1.09 times more volatile than Loctek Ergonomic Technology. It trades about 0.07 of its potential returns per unit of risk. Loctek Ergonomic Technology is currently generating about 0.02 per unit of risk. If you would invest 580.00 in Guangdong Shenglu Telecommunication on September 19, 2024 and sell it today you would earn a total of 123.00 from holding Guangdong Shenglu Telecommunication or generate 21.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Shenglu Telecommunic vs. Loctek Ergonomic Technology
Performance |
| Timeline |
| Guangdong Shenglu |
| Loctek Ergonomic Tec |
Guangdong Shenglu and Loctek Ergonomic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Shenglu and Loctek Ergonomic
The main advantage of trading using opposite Guangdong Shenglu and Loctek Ergonomic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Shenglu 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 Shenglu vs. Industrial and Commercial | Guangdong Shenglu vs. China Construction Bank | Guangdong Shenglu vs. Bank of China | Guangdong Shenglu vs. Agricultural Bank of |
| 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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