Correlation Between Loctek Ergonomic and Zhejiang Huatong
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Zhejiang Huatong Meat, you can compare the effects of market volatilities on Loctek Ergonomic and Zhejiang Huatong 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 Huatong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Zhejiang Huatong.
Diversification Opportunities for Loctek Ergonomic and Zhejiang Huatong
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Loctek and Zhejiang is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Zhejiang Huatong Meat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Huatong Meat 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 Huatong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Huatong Meat has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Zhejiang Huatong go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Zhejiang Huatong
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to generate 0.87 times more return on investment than Zhejiang Huatong. However, Loctek Ergonomic Technology is 1.15 times less risky than Zhejiang Huatong. It trades about -0.38 of its potential returns per unit of risk. Zhejiang Huatong Meat is currently generating about -0.53 per unit of risk. If you would invest 1,766 in Loctek Ergonomic Technology on October 13, 2024 and sell it today you would lose (296.00) from holding Loctek Ergonomic Technology or give up 16.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Loctek Ergonomic Technology vs. Zhejiang Huatong Meat
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Zhejiang Huatong Meat |
Loctek Ergonomic and Zhejiang Huatong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Zhejiang Huatong
The main advantage of trading using opposite Loctek Ergonomic and Zhejiang Huatong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Zhejiang Huatong 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 Huatong will offset losses from the drop in Zhejiang Huatong's long position.| Loctek Ergonomic vs. Bingo Software Co | Loctek Ergonomic vs. Kuangda Technology Group | Loctek Ergonomic vs. Holitech Technology Co | Loctek Ergonomic vs. Soyea Technology Co |
| Zhejiang Huatong vs. Aurora Optoelectronics Co | Zhejiang Huatong vs. Techshine Electronics Co | Zhejiang Huatong vs. YiDong Electronics Technology | Zhejiang Huatong vs. JuneYao Dairy Co |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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