Correlation Between Loctek Ergonomic and Northking Information
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Northking Information Technology, you can compare the effects of market volatilities on Loctek Ergonomic and Northking Information 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 Northking Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Northking Information.
Diversification Opportunities for Loctek Ergonomic and Northking Information
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Loctek and Northking is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Northking Information Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northking Information 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 Northking Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northking Information has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Northking Information go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Northking Information
Assuming the 90 days trading horizon Loctek Ergonomic is expected to generate 1.88 times less return on investment than Northking Information. But when comparing it to its historical volatility, Loctek Ergonomic Technology is 1.05 times less risky than Northking Information. It trades about 0.06 of its potential returns per unit of risk. Northking Information Technology is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,373 in Northking Information Technology on November 3, 2024 and sell it today you would earn a total of 59.00 from holding Northking Information Technology or generate 4.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loctek Ergonomic Technology vs. Northking Information Technolo
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Northking Information |
Loctek Ergonomic and Northking Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Northking Information
The main advantage of trading using opposite Loctek Ergonomic and Northking Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Northking Information 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 Northking Information will offset losses from the drop in Northking Information's long position.| Loctek Ergonomic vs. Youyou Foods Co | Loctek Ergonomic vs. Senci Electric Machinery | Loctek Ergonomic vs. V V Food | Loctek Ergonomic vs. Yankershop Food 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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