Correlation Between Loctek Ergonomic and 159783
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By analyzing existing cross correlation between Loctek Ergonomic Technology and 159783, you can compare the effects of market volatilities on Loctek Ergonomic and 159783 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 159783. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and 159783.
Diversification Opportunities for Loctek Ergonomic and 159783
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Loctek and 159783 is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and 159783 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 159783 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 159783. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 159783 has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and 159783 go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and 159783
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to generate 1.09 times more return on investment than 159783. However, Loctek Ergonomic is 1.09 times more volatile than 159783. It trades about 0.16 of its potential returns per unit of risk. 159783 is currently generating about 0.05 per unit of risk. If you would invest 1,596 in Loctek Ergonomic Technology on September 1, 2024 and sell it today you would earn a total of 137.00 from holding Loctek Ergonomic Technology or generate 8.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Loctek Ergonomic Technology vs. 159783
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| 159783 |
Loctek Ergonomic and 159783 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and 159783
The main advantage of trading using opposite Loctek Ergonomic and 159783 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, 159783 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 159783 will offset losses from the drop in 159783's long position.| Loctek Ergonomic vs. Focus Media Information | Loctek Ergonomic vs. YLZ Information Tech | Loctek Ergonomic vs. Hangzhou Gisway Information | Loctek Ergonomic vs. Yonyou Auto Information |
| 159783 vs. Shenzhen MTC Co | 159783 vs. Ming Yang Smart | 159783 vs. 159681 | 159783 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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