Correlation Between Loctek Ergonomic and Zhejiang Kingland
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Zhejiang Kingland Pipeline, you can compare the effects of market volatilities on Loctek Ergonomic and Zhejiang Kingland 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 Zhejiang Kingland. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Zhejiang Kingland.
Diversification Opportunities for Loctek Ergonomic and Zhejiang Kingland
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Loctek and Zhejiang is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Zhejiang Kingland Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Kingland 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 Zhejiang Kingland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Kingland has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Zhejiang Kingland go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Zhejiang Kingland
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to under-perform the Zhejiang Kingland. In addition to that, Loctek Ergonomic is 1.56 times more volatile than Zhejiang Kingland Pipeline. It trades about -0.17 of its total potential returns per unit of risk. Zhejiang Kingland Pipeline is currently generating about -0.13 per unit of volatility. If you would invest 602.00 in Zhejiang Kingland Pipeline on October 25, 2024 and sell it today you would lose (22.00) from holding Zhejiang Kingland Pipeline or give up 3.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loctek Ergonomic Technology vs. Zhejiang Kingland Pipeline
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Zhejiang Kingland |
Loctek Ergonomic and Zhejiang Kingland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Zhejiang Kingland
The main advantage of trading using opposite Loctek Ergonomic and Zhejiang Kingland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Zhejiang Kingland 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 Zhejiang Kingland will offset losses from the drop in Zhejiang Kingland's long position.| Loctek Ergonomic vs. Shanghai Rongtai Health | Loctek Ergonomic vs. Humanwell Healthcare Group | Loctek Ergonomic vs. Yunnan Jianzhijia Health Chain | Loctek Ergonomic vs. Impulse Qingdao Health |
| Zhejiang Kingland vs. Gansu Jiu Steel | Zhejiang Kingland vs. Ming Yang Smart | Zhejiang Kingland vs. Aba Chemicals Corp | Zhejiang Kingland 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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