Correlation Between Loctek Ergonomic and YGSOFT
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By analyzing existing cross correlation between Loctek Ergonomic Technology and YGSOFT Inc, you can compare the effects of market volatilities on Loctek Ergonomic and YGSOFT 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 YGSOFT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and YGSOFT.
Diversification Opportunities for Loctek Ergonomic and YGSOFT
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Loctek and YGSOFT is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and YGSOFT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YGSOFT Inc 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 YGSOFT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YGSOFT Inc has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and YGSOFT go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and YGSOFT
Assuming the 90 days trading horizon Loctek Ergonomic is expected to generate 1.44 times less return on investment than YGSOFT. In addition to that, Loctek Ergonomic is 1.06 times more volatile than YGSOFT Inc. It trades about 0.04 of its total potential returns per unit of risk. YGSOFT Inc is currently generating about 0.06 per unit of volatility. If you would invest 580.00 in YGSOFT Inc on September 13, 2024 and sell it today you would earn a total of 90.00 from holding YGSOFT Inc or generate 15.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.18% |
| Values | Daily Returns |
Loctek Ergonomic Technology vs. YGSOFT Inc
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| YGSOFT Inc |
Loctek Ergonomic and YGSOFT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and YGSOFT
The main advantage of trading using opposite Loctek Ergonomic and YGSOFT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, YGSOFT 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 YGSOFT will offset losses from the drop in YGSOFT's long position.| Loctek Ergonomic vs. Yuan Longping High tech | Loctek Ergonomic vs. Jinhe Biotechnology Co | Loctek Ergonomic vs. Bus Online Co | Loctek Ergonomic vs. Haima Automobile Group |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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