Correlation Between Loctek Ergonomic and Guangzhou Jinyi
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Guangzhou Jinyi Media, you can compare the effects of market volatilities on Loctek Ergonomic and Guangzhou Jinyi 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 Guangzhou Jinyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Guangzhou Jinyi.
Diversification Opportunities for Loctek Ergonomic and Guangzhou Jinyi
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Loctek and Guangzhou is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Guangzhou Jinyi Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Jinyi Media 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 Guangzhou Jinyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Jinyi Media has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Guangzhou Jinyi go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Guangzhou Jinyi
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to generate 0.89 times more return on investment than Guangzhou Jinyi. However, Loctek Ergonomic Technology is 1.12 times less risky than Guangzhou Jinyi. It trades about 0.04 of its potential returns per unit of risk. Guangzhou Jinyi Media is currently generating about 0.0 per unit of risk. If you would invest 1,297 in Loctek Ergonomic Technology on September 3, 2024 and sell it today you would earn a total of 436.00 from holding Loctek Ergonomic Technology or generate 33.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loctek Ergonomic Technology vs. Guangzhou Jinyi Media
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Guangzhou Jinyi Media |
Loctek Ergonomic and Guangzhou Jinyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Guangzhou Jinyi
The main advantage of trading using opposite Loctek Ergonomic and Guangzhou Jinyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Guangzhou Jinyi 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 Guangzhou Jinyi will offset losses from the drop in Guangzhou Jinyi's long position.| Loctek Ergonomic vs. Digital China Information | Loctek Ergonomic vs. ButOne Information Corp | Loctek Ergonomic vs. Tianshan Aluminum Group | Loctek Ergonomic vs. Anhui Gujing Distillery |
| Guangzhou Jinyi vs. Gansu Jiu Steel | Guangzhou Jinyi vs. Ming Yang Smart | Guangzhou Jinyi vs. Aba Chemicals Corp | Guangzhou Jinyi 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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