Correlation Between Loctek Ergonomic and Gan Yuan
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Gan Yuan Foods, you can compare the effects of market volatilities on Loctek Ergonomic and Gan Yuan 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 Gan Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Gan Yuan.
Diversification Opportunities for Loctek Ergonomic and Gan Yuan
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Loctek and Gan is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Gan Yuan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gan Yuan Foods 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 Gan Yuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gan Yuan Foods has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Gan Yuan go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Gan Yuan
Assuming the 90 days trading horizon Loctek Ergonomic is expected to generate 8.72 times less return on investment than Gan Yuan. But when comparing it to its historical volatility, Loctek Ergonomic Technology is 1.02 times less risky than Gan Yuan. It trades about 0.02 of its potential returns per unit of risk. Gan Yuan Foods is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 5,700 in Gan Yuan Foods on September 26, 2024 and sell it today you would earn a total of 3,185 from holding Gan Yuan Foods or generate 55.88% 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. Gan Yuan Foods
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Gan Yuan Foods |
Loctek Ergonomic and Gan Yuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Gan Yuan
The main advantage of trading using opposite Loctek Ergonomic and Gan Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Gan Yuan 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 Gan Yuan will offset losses from the drop in Gan Yuan's long position.| Loctek Ergonomic vs. Heilongjiang Publishing Media | Loctek Ergonomic vs. Quectel Wireless Solutions | Loctek Ergonomic vs. Hengdian Entertainment Co | Loctek Ergonomic vs. Dook Media Group |
| Gan Yuan vs. Fujian Longzhou Transportation | Gan Yuan vs. Hunan TV Broadcast | Gan Yuan vs. Anhui Transport Consulting | Gan Yuan vs. Shanghai Broadband 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 CEOs Directory module to screen CEOs from public companies around the world.
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