Correlation Between Loctek Ergonomic and Ningbo MedicalSystem
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Ningbo MedicalSystem Biotechnology, you can compare the effects of market volatilities on Loctek Ergonomic and Ningbo MedicalSystem 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 Ningbo MedicalSystem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Ningbo MedicalSystem.
Diversification Opportunities for Loctek Ergonomic and Ningbo MedicalSystem
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Loctek and Ningbo is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Ningbo MedicalSystem Biotechno in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo MedicalSystem 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 Ningbo MedicalSystem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo MedicalSystem has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Ningbo MedicalSystem go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Ningbo MedicalSystem
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to generate 1.62 times more return on investment than Ningbo MedicalSystem. However, Loctek Ergonomic is 1.62 times more volatile than Ningbo MedicalSystem Biotechnology. It trades about 0.06 of its potential returns per unit of risk. Ningbo MedicalSystem Biotechnology is currently generating about 0.03 per unit of risk. If you would invest 1,530 in Loctek Ergonomic Technology on November 3, 2024 and sell it today you would earn a total of 32.00 from holding Loctek Ergonomic Technology or generate 2.09% 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. Ningbo MedicalSystem Biotechno
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Ningbo MedicalSystem |
Loctek Ergonomic and Ningbo MedicalSystem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Ningbo MedicalSystem
The main advantage of trading using opposite Loctek Ergonomic and Ningbo MedicalSystem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Ningbo MedicalSystem 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 Ningbo MedicalSystem will offset losses from the drop in Ningbo MedicalSystem's long position.| Loctek Ergonomic vs. Youyou Foods Co | Loctek Ergonomic vs. Senci Electric Machinery | Loctek Ergonomic vs. V V Food | Loctek Ergonomic vs. Yankershop Food Co |
| Ningbo MedicalSystem vs. Kweichow Moutai Co | Ningbo MedicalSystem vs. G bits Network Technology | Ningbo MedicalSystem vs. Anhui Gujing Distillery | Ningbo MedicalSystem vs. Anhui Gujing Distillery |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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