Correlation Between Loctek Ergonomic and China Resources
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By analyzing existing cross correlation between Loctek Ergonomic Technology and China Resources Boya, you can compare the effects of market volatilities on Loctek Ergonomic and China Resources 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 China Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and China Resources.
Diversification Opportunities for Loctek Ergonomic and China Resources
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Loctek and China is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and China Resources Boya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Resources Boya 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 China Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Resources Boya has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and China Resources go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and China Resources
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to generate 1.15 times more return on investment than China Resources. However, Loctek Ergonomic is 1.15 times more volatile than China Resources Boya. It trades about 0.05 of its potential returns per unit of risk. China Resources Boya is currently generating about 0.0 per unit of risk. If you would invest 1,308 in Loctek Ergonomic Technology on October 25, 2024 and sell it today you would earn a total of 162.00 from holding Loctek Ergonomic Technology or generate 12.39% 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. China Resources Boya
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| China Resources Boya |
Loctek Ergonomic and China Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and China Resources
The main advantage of trading using opposite Loctek Ergonomic and China Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, China Resources 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 China Resources will offset losses from the drop in China Resources' long position.| Loctek Ergonomic vs. Shanghai Rongtai Health | Loctek Ergonomic vs. Humanwell Healthcare Group | Loctek Ergonomic vs. Yunnan Jianzhijia Health Chain | Loctek Ergonomic vs. Impulse Qingdao Health |
| China Resources vs. Shenzhen Centralcon Investment | China Resources vs. Luyin Investment Group | China Resources vs. Sportsoul Co Ltd | China Resources vs. Kunwu Jiuding Investment |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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