Correlation Between Shenzhen Kexin and Loctek Ergonomic
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By analyzing existing cross correlation between Shenzhen Kexin Communication and Loctek Ergonomic Technology, you can compare the effects of market volatilities on Shenzhen Kexin 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 Shenzhen Kexin with a short position of Loctek Ergonomic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Kexin and Loctek Ergonomic.
Diversification Opportunities for Shenzhen Kexin and Loctek Ergonomic
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Loctek is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Kexin Communication 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 Shenzhen Kexin 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 Shenzhen Kexin Communication 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 Shenzhen Kexin i.e., Shenzhen Kexin and Loctek Ergonomic go up and down completely randomly.
Pair Corralation between Shenzhen Kexin and Loctek Ergonomic
Assuming the 90 days trading horizon Shenzhen Kexin Communication is expected to under-perform the Loctek Ergonomic. In addition to that, Shenzhen Kexin is 1.55 times more volatile than Loctek Ergonomic Technology. It trades about -0.2 of its total potential returns per unit of risk. Loctek Ergonomic Technology is currently generating about 0.02 per unit of volatility. If you would invest 1,664 in Loctek Ergonomic Technology on August 25, 2024 and sell it today you would earn a total of 6.00 from holding Loctek Ergonomic Technology or generate 0.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Kexin Communication vs. Loctek Ergonomic Technology
Performance |
| Timeline |
| Shenzhen Kexin Commu |
| Loctek Ergonomic Tec |
Shenzhen Kexin and Loctek Ergonomic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Kexin and Loctek Ergonomic
The main advantage of trading using opposite Shenzhen Kexin and Loctek Ergonomic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Kexin 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.| Shenzhen Kexin vs. Ming Yang Smart | Shenzhen Kexin vs. 159005 | Shenzhen Kexin vs. Loctek Ergonomic Technology | Shenzhen Kexin vs. Xiamen East Asia |
| Loctek Ergonomic vs. Success Electronics | Loctek Ergonomic vs. Puyang Huicheng Electronic | Loctek Ergonomic vs. Integrated Electronic Systems | Loctek Ergonomic vs. Hangzhou Weiguang Electronic |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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