Correlation Between Loctek Ergonomic and Xiamen Insight
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Xiamen Insight Investment, you can compare the effects of market volatilities on Loctek Ergonomic and Xiamen Insight 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 Xiamen Insight. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Xiamen Insight.
Diversification Opportunities for Loctek Ergonomic and Xiamen Insight
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Loctek and Xiamen is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Xiamen Insight Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Insight Investment 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 Xiamen Insight. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Insight Investment has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Xiamen Insight go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Xiamen Insight
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to under-perform the Xiamen Insight. But the stock apears to be less risky and, when comparing its historical volatility, Loctek Ergonomic Technology is 1.1 times less risky than Xiamen Insight. The stock trades about -0.14 of its potential returns per unit of risk. The Xiamen Insight Investment is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest 4,324 in Xiamen Insight Investment on October 26, 2024 and sell it today you would lose (225.00) from holding Xiamen Insight Investment or give up 5.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loctek Ergonomic Technology vs. Xiamen Insight Investment
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Xiamen Insight Investment |
Loctek Ergonomic and Xiamen Insight Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Xiamen Insight
The main advantage of trading using opposite Loctek Ergonomic and Xiamen Insight positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Xiamen Insight 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 Xiamen Insight will offset losses from the drop in Xiamen Insight's long position.| Loctek Ergonomic vs. Shandong Sanyuan Biotechnology | Loctek Ergonomic vs. Guizhou Chanhen Chemical | Loctek Ergonomic vs. Guangdong Marubi Biotechnology | Loctek Ergonomic vs. Xilong Chemical Co |
| Xiamen Insight vs. Ming Yang Smart | Xiamen Insight vs. 159681 | Xiamen Insight vs. 159005 | Xiamen Insight vs. Loctek Ergonomic Technology |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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