Correlation Between Jinhe Biotechnology and Loctek Ergonomic
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By analyzing existing cross correlation between Jinhe Biotechnology Co and Loctek Ergonomic Technology, you can compare the effects of market volatilities on Jinhe Biotechnology 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 Jinhe Biotechnology with a short position of Loctek Ergonomic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhe Biotechnology and Loctek Ergonomic.
Diversification Opportunities for Jinhe Biotechnology and Loctek Ergonomic
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jinhe and Loctek is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Jinhe Biotechnology 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 Jinhe Biotechnology 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 Jinhe Biotechnology 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 Jinhe Biotechnology i.e., Jinhe Biotechnology and Loctek Ergonomic go up and down completely randomly.
Pair Corralation between Jinhe Biotechnology and Loctek Ergonomic
Assuming the 90 days trading horizon Jinhe Biotechnology is expected to generate 6.25 times less return on investment than Loctek Ergonomic. But when comparing it to its historical volatility, Jinhe Biotechnology Co is 1.3 times less risky than Loctek Ergonomic. It trades about 0.01 of its potential returns per unit of risk. Loctek Ergonomic Technology is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,381 in Loctek Ergonomic Technology on September 4, 2024 and sell it today you would earn a total of 412.00 from holding Loctek Ergonomic Technology or generate 29.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinhe Biotechnology Co vs. Loctek Ergonomic Technology
Performance |
| Timeline |
| Jinhe Biotechnology |
| Loctek Ergonomic Tec |
Jinhe Biotechnology and Loctek Ergonomic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhe Biotechnology and Loctek Ergonomic
The main advantage of trading using opposite Jinhe Biotechnology and Loctek Ergonomic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhe Biotechnology 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.| Jinhe Biotechnology vs. Sichuan Fulin Transportation | Jinhe Biotechnology vs. Fujian Longzhou Transportation | Jinhe Biotechnology vs. Hunan TV Broadcast | Jinhe Biotechnology vs. Spring Airlines Co |
| Loctek Ergonomic vs. Minmetals Capital Co | Loctek Ergonomic vs. Tongling Nonferrous Metals | Loctek Ergonomic vs. Ye Chiu Metal | Loctek Ergonomic vs. Shanghai Yanpu Metal |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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