Correlation Between Yes Optoelectronics and Loctek Ergonomic
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By analyzing existing cross correlation between Yes Optoelectronics Co and Loctek Ergonomic Technology, you can compare the effects of market volatilities on Yes Optoelectronics 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 Yes Optoelectronics with a short position of Loctek Ergonomic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yes Optoelectronics and Loctek Ergonomic.
Diversification Opportunities for Yes Optoelectronics and Loctek Ergonomic
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Yes and Loctek is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Yes Optoelectronics 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 Yes Optoelectronics 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 Yes Optoelectronics 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 Yes Optoelectronics i.e., Yes Optoelectronics and Loctek Ergonomic go up and down completely randomly.
Pair Corralation between Yes Optoelectronics and Loctek Ergonomic
Assuming the 90 days trading horizon Yes Optoelectronics Co is expected to generate 0.95 times more return on investment than Loctek Ergonomic. However, Yes Optoelectronics Co is 1.06 times less risky than Loctek Ergonomic. It trades about 0.03 of its potential returns per unit of risk. Loctek Ergonomic Technology is currently generating about -0.14 per unit of risk. If you would invest 2,568 in Yes Optoelectronics Co on September 25, 2024 and sell it today you would earn a total of 25.00 from holding Yes Optoelectronics Co or generate 0.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yes Optoelectronics Co vs. Loctek Ergonomic Technology
Performance |
| Timeline |
| Yes Optoelectronics |
| Loctek Ergonomic Tec |
Yes Optoelectronics and Loctek Ergonomic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yes Optoelectronics and Loctek Ergonomic
The main advantage of trading using opposite Yes Optoelectronics and Loctek Ergonomic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yes Optoelectronics 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.| Yes Optoelectronics vs. Industrial and Commercial | Yes Optoelectronics vs. China Construction Bank | Yes Optoelectronics vs. Agricultural Bank of | Yes Optoelectronics vs. Bank of China |
| Loctek Ergonomic vs. Ming Yang Smart | Loctek Ergonomic vs. 159681 | Loctek Ergonomic vs. 159005 | Loctek Ergonomic vs. Yes Optoelectronics Co |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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