Correlation Between Loctek Ergonomic and Shenzhen Shenbao
Specify exactly 2 symbols:
By analyzing existing cross correlation between Loctek Ergonomic Technology and Shenzhen Shenbao Industrial, you can compare the effects of market volatilities on Loctek Ergonomic and Shenzhen Shenbao 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 Loctek Ergonomic with a short position of Shenzhen Shenbao. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Shenzhen Shenbao.
Diversification Opportunities for Loctek Ergonomic and Shenzhen Shenbao
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Loctek and Shenzhen is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Shenzhen Shenbao Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Shenbao Ind and Loctek Ergonomic 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 Loctek Ergonomic Technology are associated (or correlated) with Shenzhen Shenbao. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Shenbao Ind has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Shenzhen Shenbao go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Shenzhen Shenbao
Assuming the 90 days trading horizon Loctek Ergonomic is expected to generate 1.08 times less return on investment than Shenzhen Shenbao. In addition to that, Loctek Ergonomic is 1.34 times more volatile than Shenzhen Shenbao Industrial. It trades about 0.06 of its total potential returns per unit of risk. Shenzhen Shenbao Industrial is currently generating about 0.08 per unit of volatility. If you would invest 605.00 in Shenzhen Shenbao Industrial on September 3, 2024 and sell it today you would earn a total of 114.00 from holding Shenzhen Shenbao Industrial or generate 18.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loctek Ergonomic Technology vs. Shenzhen Shenbao Industrial
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Shenzhen Shenbao Ind |
Loctek Ergonomic and Shenzhen Shenbao Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Shenzhen Shenbao
The main advantage of trading using opposite Loctek Ergonomic and Shenzhen Shenbao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Shenzhen Shenbao 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 Shenzhen Shenbao will offset losses from the drop in Shenzhen Shenbao's long position.| Loctek Ergonomic vs. Digital China Information | Loctek Ergonomic vs. ButOne Information Corp | Loctek Ergonomic vs. Tianshan Aluminum Group | Loctek Ergonomic vs. Anhui Gujing Distillery |
| Shenzhen Shenbao vs. Eastern Communications Co | Shenzhen Shenbao vs. Zhejiang Kingland Pipeline | Shenzhen Shenbao vs. Gome Telecom Equipment | Shenzhen Shenbao vs. China Satellite Communications |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |