Correlation Between Loctek Ergonomic and Shenzhen Silver
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Shenzhen Silver Basis, you can compare the effects of market volatilities on Loctek Ergonomic and Shenzhen Silver 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 Shenzhen Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Shenzhen Silver.
Diversification Opportunities for Loctek Ergonomic and Shenzhen Silver
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Loctek and Shenzhen is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Shenzhen Silver Basis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Silver Basis 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 Shenzhen Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Silver Basis has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Shenzhen Silver go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Shenzhen Silver
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to generate 0.65 times more return on investment than Shenzhen Silver. However, Loctek Ergonomic Technology is 1.54 times less risky than Shenzhen Silver. It trades about -0.05 of its potential returns per unit of risk. Shenzhen Silver Basis is currently generating about -0.14 per unit of risk. If you would invest 1,571 in Loctek Ergonomic Technology on October 22, 2024 and sell it today you would lose (38.00) from holding Loctek Ergonomic Technology or give up 2.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loctek Ergonomic Technology vs. Shenzhen Silver Basis
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Shenzhen Silver Basis |
Loctek Ergonomic and Shenzhen Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Shenzhen Silver
The main advantage of trading using opposite Loctek Ergonomic and Shenzhen Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Shenzhen Silver 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 Shenzhen Silver will offset losses from the drop in Shenzhen Silver's long position.| Loctek Ergonomic vs. Tonghua Grape Wine | Loctek Ergonomic vs. Nexchip Semiconductor Corp | Loctek Ergonomic vs. Southchip Semiconductor Technology | Loctek Ergonomic vs. Will Semiconductor Co |
| Shenzhen Silver vs. Western Metal Materials | Shenzhen Silver vs. Wuhan Yangtze Communication | Shenzhen Silver vs. Bosera CMSK Industrial | Shenzhen Silver vs. Nanjing Putian Telecommunications |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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