Correlation Between Loctek Ergonomic and Dhc Software
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Dhc Software Co, you can compare the effects of market volatilities on Loctek Ergonomic and Dhc Software 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 Dhc Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Dhc Software.
Diversification Opportunities for Loctek Ergonomic and Dhc Software
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Loctek and Dhc is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Dhc Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dhc Software 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 Dhc Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dhc Software has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Dhc Software go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Dhc Software
Assuming the 90 days trading horizon Loctek Ergonomic is expected to generate 10.0 times less return on investment than Dhc Software. But when comparing it to its historical volatility, Loctek Ergonomic Technology is 1.16 times less risky than Dhc Software. It trades about 0.02 of its potential returns per unit of risk. Dhc Software Co is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 447.00 in Dhc Software Co on September 26, 2024 and sell it today you would earn a total of 291.00 from holding Dhc Software Co or generate 65.1% 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. Dhc Software Co
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Dhc Software |
Loctek Ergonomic and Dhc Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Dhc Software
The main advantage of trading using opposite Loctek Ergonomic and Dhc Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Dhc Software 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 Dhc Software will offset losses from the drop in Dhc Software's long position.| Loctek Ergonomic vs. Heilongjiang Publishing Media | Loctek Ergonomic vs. Quectel Wireless Solutions | Loctek Ergonomic vs. Hengdian Entertainment Co | Loctek Ergonomic vs. Dook Media Group |
| Dhc Software vs. Ming Yang Smart | Dhc Software vs. 159681 | Dhc Software vs. 159005 | Dhc Software 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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