Correlation Between AVCON Information and Loctek Ergonomic
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By analyzing existing cross correlation between AVCON Information Tech and Loctek Ergonomic Technology, you can compare the effects of market volatilities on AVCON Information 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 AVCON Information with a short position of Loctek Ergonomic. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVCON Information and Loctek Ergonomic.
Diversification Opportunities for AVCON Information and Loctek Ergonomic
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between AVCON and Loctek is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding AVCON Information Tech 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 AVCON Information 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 AVCON Information Tech 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 AVCON Information i.e., AVCON Information and Loctek Ergonomic go up and down completely randomly.
Pair Corralation between AVCON Information and Loctek Ergonomic
Assuming the 90 days trading horizon AVCON Information Tech is expected to generate 1.33 times more return on investment than Loctek Ergonomic. However, AVCON Information is 1.33 times more volatile than Loctek Ergonomic Technology. It trades about 0.22 of its potential returns per unit of risk. Loctek Ergonomic Technology is currently generating about 0.22 per unit of risk. If you would invest 418.00 in AVCON Information Tech on September 2, 2024 and sell it today you would earn a total of 65.00 from holding AVCON Information Tech or generate 15.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
AVCON Information Tech vs. Loctek Ergonomic Technology
Performance |
| Timeline |
| AVCON Information Tech |
| Loctek Ergonomic Tec |
AVCON Information and Loctek Ergonomic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVCON Information and Loctek Ergonomic
The main advantage of trading using opposite AVCON Information and Loctek Ergonomic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVCON Information 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.| AVCON Information vs. Industrial and Commercial | AVCON Information vs. Kweichow Moutai Co | AVCON Information vs. Agricultural Bank of | AVCON Information vs. China Mobile Limited |
| Loctek Ergonomic vs. Zhuhai Comleader Information | Loctek Ergonomic vs. YLZ Information Tech | Loctek Ergonomic vs. Longmaster Information Tech | Loctek Ergonomic vs. Fujian Boss Software |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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