Correlation Between Loctek Ergonomic and Porton Fine
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Porton Fine Chemicals, you can compare the effects of market volatilities on Loctek Ergonomic and Porton Fine 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 Porton Fine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Porton Fine.
Diversification Opportunities for Loctek Ergonomic and Porton Fine
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Loctek and Porton is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Porton Fine Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Porton Fine Chemicals 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 Porton Fine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Porton Fine Chemicals has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Porton Fine go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Porton Fine
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to under-perform the Porton Fine. In addition to that, Loctek Ergonomic is 1.06 times more volatile than Porton Fine Chemicals. It trades about -0.15 of its total potential returns per unit of risk. Porton Fine Chemicals is currently generating about -0.05 per unit of volatility. If you would invest 1,635 in Porton Fine Chemicals on October 28, 2024 and sell it today you would lose (38.00) from holding Porton Fine Chemicals or give up 2.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loctek Ergonomic Technology vs. Porton Fine Chemicals
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Porton Fine Chemicals |
Loctek Ergonomic and Porton Fine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Porton Fine
The main advantage of trading using opposite Loctek Ergonomic and Porton Fine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Porton Fine 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 Porton Fine will offset losses from the drop in Porton Fine's long position.| Loctek Ergonomic vs. Changchun UP Optotech | Loctek Ergonomic vs. Jiujiang Shanshui Technology | Loctek Ergonomic vs. Bohai Leasing Co | Loctek Ergonomic vs. Cabio Biotech Wuhan |
| Porton Fine vs. Shaanxi Meineng Clean | Porton Fine vs. Bank of Communications | Porton Fine vs. Hainan Airlines Co | Porton Fine vs. Jiangsu Xinri E Vehicle |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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