Correlation Between Loctek Ergonomic and Guangzhou Seagull
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Guangzhou Seagull Kitchen, you can compare the effects of market volatilities on Loctek Ergonomic and Guangzhou Seagull 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 Guangzhou Seagull. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Guangzhou Seagull.
Diversification Opportunities for Loctek Ergonomic and Guangzhou Seagull
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Loctek and Guangzhou is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Guangzhou Seagull Kitchen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Seagull Kitchen 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 Guangzhou Seagull. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Seagull Kitchen has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Guangzhou Seagull go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Guangzhou Seagull
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to generate 1.1 times more return on investment than Guangzhou Seagull. However, Loctek Ergonomic is 1.1 times more volatile than Guangzhou Seagull Kitchen. It trades about 0.04 of its potential returns per unit of risk. Guangzhou Seagull Kitchen is currently generating about -0.01 per unit of risk. If you would invest 1,199 in Loctek Ergonomic Technology on September 13, 2024 and sell it today you would earn a total of 515.00 from holding Loctek Ergonomic Technology or generate 42.95% 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. Guangzhou Seagull Kitchen
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Guangzhou Seagull Kitchen |
Loctek Ergonomic and Guangzhou Seagull Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Guangzhou Seagull
The main advantage of trading using opposite Loctek Ergonomic and Guangzhou Seagull positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Guangzhou Seagull 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 Guangzhou Seagull will offset losses from the drop in Guangzhou Seagull'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 |
| Guangzhou Seagull vs. Kweichow Moutai Co | Guangzhou Seagull vs. Shenzhen Mindray Bio Medical | Guangzhou Seagull vs. Jiangsu Pacific Quartz | Guangzhou Seagull vs. G bits Network 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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