Correlation Between Loctek Ergonomic and Kangyue Technology
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Kangyue Technology Co, you can compare the effects of market volatilities on Loctek Ergonomic and Kangyue Technology 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 Kangyue Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Kangyue Technology.
Diversification Opportunities for Loctek Ergonomic and Kangyue Technology
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Loctek and Kangyue is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Kangyue Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kangyue Technology 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 Kangyue Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kangyue Technology has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Kangyue Technology go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Kangyue Technology
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to generate 0.59 times more return on investment than Kangyue Technology. However, Loctek Ergonomic Technology is 1.7 times less risky than Kangyue Technology. It trades about 0.03 of its potential returns per unit of risk. Kangyue Technology Co is currently generating about 0.01 per unit of risk. If you would invest 1,314 in Loctek Ergonomic Technology on September 5, 2024 and sell it today you would earn a total of 377.00 from holding Loctek Ergonomic Technology or generate 28.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loctek Ergonomic Technology vs. Kangyue Technology Co
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Kangyue Technology |
Loctek Ergonomic and Kangyue Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Kangyue Technology
The main advantage of trading using opposite Loctek Ergonomic and Kangyue Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Kangyue Technology 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 Kangyue Technology will offset losses from the drop in Kangyue Technology's long position.| Loctek Ergonomic vs. Nuode Investment Co | Loctek Ergonomic vs. Metro Investment Development | Loctek Ergonomic vs. Kunwu Jiuding Investment | Loctek Ergonomic vs. Glodon Software Co |
| Kangyue Technology vs. Ming Yang Smart | Kangyue Technology vs. 159681 | Kangyue Technology vs. 159005 | Kangyue Technology 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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