Correlation Between Shenzhen Silver and Loctek Ergonomic
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By analyzing existing cross correlation between Shenzhen Silver Basis and Loctek Ergonomic Technology, you can compare the effects of market volatilities on Shenzhen Silver 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 Shenzhen Silver with a short position of Loctek Ergonomic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Silver and Loctek Ergonomic.
Diversification Opportunities for Shenzhen Silver and Loctek Ergonomic
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenzhen and Loctek is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Silver Basis 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 Shenzhen Silver 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 Shenzhen Silver Basis 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 Shenzhen Silver i.e., Shenzhen Silver and Loctek Ergonomic go up and down completely randomly.
Pair Corralation between Shenzhen Silver and Loctek Ergonomic
Assuming the 90 days trading horizon Shenzhen Silver Basis is expected to under-perform the Loctek Ergonomic. In addition to that, Shenzhen Silver is 1.33 times more volatile than Loctek Ergonomic Technology. It trades about -0.04 of its total potential returns per unit of risk. Loctek Ergonomic Technology is currently generating about 0.0 per unit of volatility. If you would invest 1,643 in Loctek Ergonomic Technology on October 16, 2024 and sell it today you would lose (152.00) from holding Loctek Ergonomic Technology or give up 9.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Silver Basis vs. Loctek Ergonomic Technology
Performance |
| Timeline |
| Shenzhen Silver Basis |
| Loctek Ergonomic Tec |
Shenzhen Silver and Loctek Ergonomic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Silver and Loctek Ergonomic
The main advantage of trading using opposite Shenzhen Silver and Loctek Ergonomic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Silver 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.| Shenzhen Silver vs. Chenzhou Jingui Silver | Shenzhen Silver vs. Shengda Mining Co | Shenzhen Silver vs. Anhui Transport Consulting | Shenzhen Silver vs. Guangdong Silvere Sci |
| Loctek Ergonomic vs. Shenzhen Silver Basis | Loctek Ergonomic vs. JCHX Mining Management | Loctek Ergonomic vs. Zijin Mining Group | Loctek Ergonomic vs. Shenyang Blue Silver |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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