Correlation Between Loctek Ergonomic and Success Electronics
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Success Electronics, you can compare the effects of market volatilities on Loctek Ergonomic and Success Electronics 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 Success Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Success Electronics.
Diversification Opportunities for Loctek Ergonomic and Success Electronics
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Loctek and Success is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Success Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Success Electronics 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 Success Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Success Electronics has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Success Electronics go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Success Electronics
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to generate 1.05 times more return on investment than Success Electronics. However, Loctek Ergonomic is 1.05 times more volatile than Success Electronics. It trades about 0.17 of its potential returns per unit of risk. Success Electronics is currently generating about 0.18 per unit of risk. If you would invest 1,331 in Loctek Ergonomic Technology on August 28, 2024 and sell it today you would earn a total of 477.00 from holding Loctek Ergonomic Technology or generate 35.84% 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. Success Electronics
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Success Electronics |
Loctek Ergonomic and Success Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Success Electronics
The main advantage of trading using opposite Loctek Ergonomic and Success Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Success Electronics 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 Success Electronics will offset losses from the drop in Success Electronics' long position.| Loctek Ergonomic vs. Everjoy Health Group | Loctek Ergonomic vs. PKU HealthCare Corp | Loctek Ergonomic vs. Meinian Onehealth Healthcare | Loctek Ergonomic vs. Anhui Deli Household |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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