Correlation Between Aba Chemicals and Loctek Ergonomic
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By analyzing existing cross correlation between Aba Chemicals Corp and Loctek Ergonomic Technology, you can compare the effects of market volatilities on Aba Chemicals 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 Aba Chemicals with a short position of Loctek Ergonomic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aba Chemicals and Loctek Ergonomic.
Diversification Opportunities for Aba Chemicals and Loctek Ergonomic
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aba and Loctek is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Aba Chemicals Corp 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 Aba Chemicals 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 Aba Chemicals Corp 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 Aba Chemicals i.e., Aba Chemicals and Loctek Ergonomic go up and down completely randomly.
Pair Corralation between Aba Chemicals and Loctek Ergonomic
Assuming the 90 days trading horizon Aba Chemicals Corp is expected to under-perform the Loctek Ergonomic. In addition to that, Aba Chemicals is 1.16 times more volatile than Loctek Ergonomic Technology. It trades about -0.21 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 1,571 in Loctek Ergonomic Technology on October 24, 2024 and sell it today you would lose (70.00) from holding Loctek Ergonomic Technology or give up 4.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aba Chemicals Corp vs. Loctek Ergonomic Technology
Performance |
| Timeline |
| Aba Chemicals Corp |
| Loctek Ergonomic Tec |
Aba Chemicals and Loctek Ergonomic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aba Chemicals and Loctek Ergonomic
The main advantage of trading using opposite Aba Chemicals and Loctek Ergonomic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aba Chemicals 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.| Aba Chemicals vs. Jiangsu Phoenix Publishing | Aba Chemicals vs. Xiamen Goldenhome Co | Aba Chemicals vs. Ningbo Homelink Eco iTech | Aba Chemicals vs. Nanxing Furniture Machinery |
| Loctek Ergonomic vs. Aba Chemicals Corp | Loctek Ergonomic vs. Shandong Polymer Biochemicals | Loctek Ergonomic vs. Zhejiang Kingland Pipeline | Loctek Ergonomic vs. Ningxia Younglight Chemicals |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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