Correlation Between Sichuan Jinshi and Loctek Ergonomic
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By analyzing existing cross correlation between Sichuan Jinshi Technology and Loctek Ergonomic Technology, you can compare the effects of market volatilities on Sichuan Jinshi 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 Sichuan Jinshi with a short position of Loctek Ergonomic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Jinshi and Loctek Ergonomic.
Diversification Opportunities for Sichuan Jinshi and Loctek Ergonomic
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sichuan and Loctek is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Jinshi Technology 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 Sichuan Jinshi 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 Sichuan Jinshi Technology 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 Sichuan Jinshi i.e., Sichuan Jinshi and Loctek Ergonomic go up and down completely randomly.
Pair Corralation between Sichuan Jinshi and Loctek Ergonomic
Assuming the 90 days trading horizon Sichuan Jinshi Technology is expected to under-perform the Loctek Ergonomic. In addition to that, Sichuan Jinshi is 1.03 times more volatile than Loctek Ergonomic Technology. It trades about -0.09 of its total potential returns per unit of risk. Loctek Ergonomic Technology is currently generating about -0.1 per unit of volatility. If you would invest 1,715 in Loctek Ergonomic Technology on October 16, 2024 and sell it today you would lose (186.00) from holding Loctek Ergonomic Technology or give up 10.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Jinshi Technology vs. Loctek Ergonomic Technology
Performance |
| Timeline |
| Sichuan Jinshi Technology |
| Loctek Ergonomic Tec |
Sichuan Jinshi and Loctek Ergonomic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Jinshi and Loctek Ergonomic
The main advantage of trading using opposite Sichuan Jinshi and Loctek Ergonomic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Jinshi 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.| Sichuan Jinshi vs. Guangzhou Haige Communications | Sichuan Jinshi vs. Xinya Electronic Co | Sichuan Jinshi vs. Tongyu Communication | Sichuan Jinshi vs. Fuzhou Rockchip Electronics |
| Loctek Ergonomic vs. Chahua Modern Housewares | Loctek Ergonomic vs. Kuang Chi Technologies | Loctek Ergonomic vs. Fiberhome Telecommunication Technologies | Loctek Ergonomic vs. Sichuan Jinshi Technology |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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