Correlation Between Loctek Ergonomic and XinJiang GuoTong
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By analyzing existing cross correlation between Loctek Ergonomic Technology and XinJiang GuoTong Pipeline, you can compare the effects of market volatilities on Loctek Ergonomic and XinJiang GuoTong 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 XinJiang GuoTong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and XinJiang GuoTong.
Diversification Opportunities for Loctek Ergonomic and XinJiang GuoTong
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Loctek and XinJiang is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and XinJiang GuoTong Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XinJiang GuoTong Pipeline 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 XinJiang GuoTong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XinJiang GuoTong Pipeline has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and XinJiang GuoTong go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and XinJiang GuoTong
Assuming the 90 days trading horizon Loctek Ergonomic is expected to generate 2.24 times less return on investment than XinJiang GuoTong. But when comparing it to its historical volatility, Loctek Ergonomic Technology is 1.3 times less risky than XinJiang GuoTong. It trades about 0.05 of its potential returns per unit of risk. XinJiang GuoTong Pipeline is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 613.00 in XinJiang GuoTong Pipeline on October 26, 2024 and sell it today you would earn a total of 203.00 from holding XinJiang GuoTong Pipeline or generate 33.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loctek Ergonomic Technology vs. XinJiang GuoTong Pipeline
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| XinJiang GuoTong Pipeline |
Loctek Ergonomic and XinJiang GuoTong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and XinJiang GuoTong
The main advantage of trading using opposite Loctek Ergonomic and XinJiang GuoTong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, XinJiang GuoTong 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 XinJiang GuoTong will offset losses from the drop in XinJiang GuoTong's long position.| Loctek Ergonomic vs. Shandong Sanyuan Biotechnology | Loctek Ergonomic vs. Guizhou Chanhen Chemical | Loctek Ergonomic vs. Guangdong Marubi Biotechnology | Loctek Ergonomic vs. Xilong Chemical Co |
| XinJiang GuoTong vs. Ming Yang Smart | XinJiang GuoTong vs. 159681 | XinJiang GuoTong vs. 159005 | XinJiang GuoTong 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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