Correlation Between Loctek Ergonomic and 159681
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By analyzing existing cross correlation between Loctek Ergonomic Technology and 159681, you can compare the effects of market volatilities on Loctek Ergonomic and 159681 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 159681. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and 159681.
Diversification Opportunities for Loctek Ergonomic and 159681
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Loctek and 159681 is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and 159681 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 159681 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 159681. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 159681 has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and 159681 go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and 159681
Assuming the 90 days trading horizon Loctek Ergonomic is expected to generate 2.15 times less return on investment than 159681. But when comparing it to its historical volatility, Loctek Ergonomic Technology is 1.27 times less risky than 159681. It trades about 0.02 of its potential returns per unit of risk. 159681 is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 95.00 in 159681 on August 25, 2024 and sell it today you would earn a total of 1.00 from holding 159681 or generate 1.05% 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. 159681
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| 159681 |
Loctek Ergonomic and 159681 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and 159681
The main advantage of trading using opposite Loctek Ergonomic and 159681 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, 159681 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 159681 will offset losses from the drop in 159681's long position.| Loctek Ergonomic vs. Xinjiang Baodi Mining | Loctek Ergonomic vs. Minmetals Capital Co | Loctek Ergonomic vs. Tianjin Hi Tech Development | Loctek Ergonomic vs. CITIC Metal Co |
| 159681 vs. Shenzhen MTC Co | 159681 vs. Ming Yang Smart | 159681 vs. Changzhou Almaden Co | 159681 vs. 159005 |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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