Correlation Between Loctek Ergonomic and Xinjiang Communications
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Xinjiang Communications Construction, you can compare the effects of market volatilities on Loctek Ergonomic and Xinjiang Communications 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 Xinjiang Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Xinjiang Communications.
Diversification Opportunities for Loctek Ergonomic and Xinjiang Communications
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Loctek and Xinjiang is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Xinjiang Communications Constr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Communications 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 Xinjiang Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Communications has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Xinjiang Communications go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Xinjiang Communications
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to generate 0.99 times more return on investment than Xinjiang Communications. However, Loctek Ergonomic Technology is 1.01 times less risky than Xinjiang Communications. It trades about 0.04 of its potential returns per unit of risk. Xinjiang Communications Construction is currently generating about 0.01 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 | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loctek Ergonomic Technology vs. Xinjiang Communications Constr
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Xinjiang Communications |
Loctek Ergonomic and Xinjiang Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Xinjiang Communications
The main advantage of trading using opposite Loctek Ergonomic and Xinjiang Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Xinjiang Communications 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 Xinjiang Communications will offset losses from the drop in Xinjiang Communications' 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 |
| Xinjiang Communications vs. Cultural Investment Holdings | Xinjiang Communications vs. Gome Telecom Equipment | Xinjiang Communications vs. Bus Online Co | Xinjiang Communications vs. Holitech Technology 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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