Correlation Between Loctek Ergonomic and Yuan Longping
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Yuan Longping High tech, you can compare the effects of market volatilities on Loctek Ergonomic and Yuan Longping 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 Yuan Longping. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Yuan Longping.
Diversification Opportunities for Loctek Ergonomic and Yuan Longping
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Loctek and Yuan is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Yuan Longping High tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yuan Longping High 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 Yuan Longping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yuan Longping High has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Yuan Longping go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Yuan Longping
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to generate 1.08 times more return on investment than Yuan Longping. However, Loctek Ergonomic is 1.08 times more volatile than Yuan Longping High tech. It trades about 0.22 of its potential returns per unit of risk. Yuan Longping High tech is currently generating about 0.04 per unit of risk. If you would invest 1,554 in Loctek Ergonomic Technology on September 2, 2024 and sell it today you would earn a total of 179.00 from holding Loctek Ergonomic Technology or generate 11.52% 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. Yuan Longping High tech
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Yuan Longping High |
Loctek Ergonomic and Yuan Longping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Yuan Longping
The main advantage of trading using opposite Loctek Ergonomic and Yuan Longping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Yuan Longping 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 Yuan Longping will offset losses from the drop in Yuan Longping's long position.| Loctek Ergonomic vs. Zhuhai Comleader Information | Loctek Ergonomic vs. YLZ Information Tech | Loctek Ergonomic vs. Longmaster Information Tech | Loctek Ergonomic vs. Fujian Boss Software |
| Yuan Longping vs. Ming Yang Smart | Yuan Longping vs. 159681 | Yuan Longping vs. 159005 | Yuan Longping 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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