Correlation Between Inner Mongolia and Loctek Ergonomic
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By analyzing existing cross correlation between Inner Mongolia Furui and Loctek Ergonomic Technology, you can compare the effects of market volatilities on Inner Mongolia 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 Inner Mongolia with a short position of Loctek Ergonomic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inner Mongolia and Loctek Ergonomic.
Diversification Opportunities for Inner Mongolia and Loctek Ergonomic
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Inner and Loctek is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Inner Mongolia Furui 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 Inner Mongolia 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 Inner Mongolia Furui 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 Inner Mongolia i.e., Inner Mongolia and Loctek Ergonomic go up and down completely randomly.
Pair Corralation between Inner Mongolia and Loctek Ergonomic
Assuming the 90 days trading horizon Inner Mongolia Furui is expected to under-perform the Loctek Ergonomic. In addition to that, Inner Mongolia is 2.09 times more volatile than Loctek Ergonomic Technology. It trades about -0.25 of its total potential returns per unit of risk. Loctek Ergonomic Technology is currently generating about 0.2 per unit of volatility. If you would invest 1,638 in Loctek Ergonomic Technology on August 29, 2024 and sell it today you would earn a total of 170.00 from holding Loctek Ergonomic Technology or generate 10.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inner Mongolia Furui vs. Loctek Ergonomic Technology
Performance |
| Timeline |
| Inner Mongolia Furui |
| Loctek Ergonomic Tec |
Inner Mongolia and Loctek Ergonomic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inner Mongolia and Loctek Ergonomic
The main advantage of trading using opposite Inner Mongolia and Loctek Ergonomic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inner Mongolia 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.| Inner Mongolia vs. Industrial and Commercial | Inner Mongolia vs. Agricultural Bank of | Inner Mongolia vs. China Construction Bank | Inner Mongolia vs. Bank of China |
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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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