Correlation Between Loctek Ergonomic and Xiangyang Automobile
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Xiangyang Automobile Bearing, you can compare the effects of market volatilities on Loctek Ergonomic and Xiangyang Automobile 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 Xiangyang Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Xiangyang Automobile.
Diversification Opportunities for Loctek Ergonomic and Xiangyang Automobile
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Loctek and Xiangyang is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Xiangyang Automobile Bearing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiangyang Automobile 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 Xiangyang Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiangyang Automobile has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Xiangyang Automobile go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Xiangyang Automobile
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to under-perform the Xiangyang Automobile. But the stock apears to be less risky and, when comparing its historical volatility, Loctek Ergonomic Technology is 2.24 times less risky than Xiangyang Automobile. The stock trades about -0.14 of its potential returns per unit of risk. The Xiangyang Automobile Bearing is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 636.00 in Xiangyang Automobile Bearing on October 26, 2024 and sell it today you would earn a total of 5.00 from holding Xiangyang Automobile Bearing or generate 0.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loctek Ergonomic Technology vs. Xiangyang Automobile Bearing
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Xiangyang Automobile |
Loctek Ergonomic and Xiangyang Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Xiangyang Automobile
The main advantage of trading using opposite Loctek Ergonomic and Xiangyang Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Xiangyang Automobile 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 Xiangyang Automobile will offset losses from the drop in Xiangyang Automobile'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 |
| Xiangyang Automobile vs. Kweichow Moutai Co | Xiangyang Automobile vs. Jiangsu Pacific Quartz | Xiangyang Automobile vs. Shenzhen Transsion Holdings | Xiangyang Automobile vs. Beijing Roborock 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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