Correlation Between Loctek Ergonomic and Zhengzhou Qianweiyangchu
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Zhengzhou Qianweiyangchu Food, you can compare the effects of market volatilities on Loctek Ergonomic and Zhengzhou Qianweiyangchu 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 Zhengzhou Qianweiyangchu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Zhengzhou Qianweiyangchu.
Diversification Opportunities for Loctek Ergonomic and Zhengzhou Qianweiyangchu
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Loctek and Zhengzhou is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Zhengzhou Qianweiyangchu Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhengzhou Qianweiyangchu 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 Zhengzhou Qianweiyangchu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhengzhou Qianweiyangchu has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Zhengzhou Qianweiyangchu go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Zhengzhou Qianweiyangchu
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to generate 1.07 times more return on investment than Zhengzhou Qianweiyangchu. However, Loctek Ergonomic is 1.07 times more volatile than Zhengzhou Qianweiyangchu Food. It trades about 0.03 of its potential returns per unit of risk. Zhengzhou Qianweiyangchu Food is currently generating about -0.04 per unit of risk. If you would invest 1,222 in Loctek Ergonomic Technology on September 26, 2024 and sell it today you would earn a total of 362.00 from holding Loctek Ergonomic Technology or generate 29.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loctek Ergonomic Technology vs. Zhengzhou Qianweiyangchu Food
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Zhengzhou Qianweiyangchu |
Loctek Ergonomic and Zhengzhou Qianweiyangchu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Zhengzhou Qianweiyangchu
The main advantage of trading using opposite Loctek Ergonomic and Zhengzhou Qianweiyangchu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Zhengzhou Qianweiyangchu 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 Zhengzhou Qianweiyangchu will offset losses from the drop in Zhengzhou Qianweiyangchu's long position.| Loctek Ergonomic vs. Ming Yang Smart | Loctek Ergonomic vs. 159681 | Loctek Ergonomic vs. 159005 | Loctek Ergonomic vs. Yes Optoelectronics Co |
| Zhengzhou Qianweiyangchu vs. Ming Yang Smart | Zhengzhou Qianweiyangchu vs. 159681 | Zhengzhou Qianweiyangchu vs. 159005 | Zhengzhou Qianweiyangchu 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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