Correlation Between Loctek Ergonomic and Anhui Gujing
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Anhui Gujing Distillery, you can compare the effects of market volatilities on Loctek Ergonomic and Anhui Gujing 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 Anhui Gujing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Anhui Gujing.
Diversification Opportunities for Loctek Ergonomic and Anhui Gujing
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Loctek and Anhui is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Anhui Gujing Distillery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Gujing Distillery 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 Anhui Gujing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Gujing Distillery has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Anhui Gujing go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Anhui Gujing
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to generate 1.26 times more return on investment than Anhui Gujing. However, Loctek Ergonomic is 1.26 times more volatile than Anhui Gujing Distillery. It trades about 0.06 of its potential returns per unit of risk. Anhui Gujing Distillery is currently generating about -0.05 per unit of risk. If you would invest 1,530 in Loctek Ergonomic Technology on November 3, 2024 and sell it today you would earn a total of 32.00 from holding Loctek Ergonomic Technology or generate 2.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loctek Ergonomic Technology vs. Anhui Gujing Distillery
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Anhui Gujing Distillery |
Loctek Ergonomic and Anhui Gujing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Anhui Gujing
The main advantage of trading using opposite Loctek Ergonomic and Anhui Gujing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Anhui Gujing 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 Anhui Gujing will offset losses from the drop in Anhui Gujing's long position.| Loctek Ergonomic vs. Youyou Foods Co | Loctek Ergonomic vs. Senci Electric Machinery | Loctek Ergonomic vs. V V Food | Loctek Ergonomic vs. Yankershop Food Co |
| Anhui Gujing vs. Eastroc Beverage Group | Anhui Gujing vs. UE Furniture Co | Anhui Gujing vs. Jiangsu Financial Leasing | Anhui Gujing vs. Ziel Home Furnishing |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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