Correlation Between Loctek Ergonomic and Guangdong Wens
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Guangdong Wens Foodstuff, you can compare the effects of market volatilities on Loctek Ergonomic and Guangdong Wens 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 Guangdong Wens. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Guangdong Wens.
Diversification Opportunities for Loctek Ergonomic and Guangdong Wens
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Loctek and Guangdong is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Guangdong Wens Foodstuff in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Wens Foodstuff 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 Guangdong Wens. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Wens Foodstuff has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Guangdong Wens go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Guangdong Wens
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to generate 1.1 times more return on investment than Guangdong Wens. However, Loctek Ergonomic is 1.1 times more volatile than Guangdong Wens Foodstuff. It trades about 0.02 of its potential returns per unit of risk. Guangdong Wens Foodstuff is currently generating about -0.04 per unit of risk. If you would invest 1,549 in Loctek Ergonomic Technology on September 26, 2024 and sell it today you would earn a total of 14.00 from holding Loctek Ergonomic Technology or generate 0.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loctek Ergonomic Technology vs. Guangdong Wens Foodstuff
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Guangdong Wens Foodstuff |
Loctek Ergonomic and Guangdong Wens Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Guangdong Wens
The main advantage of trading using opposite Loctek Ergonomic and Guangdong Wens positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Guangdong Wens 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 Guangdong Wens will offset losses from the drop in Guangdong Wens' long position.| Loctek Ergonomic vs. Heilongjiang Publishing Media | Loctek Ergonomic vs. Quectel Wireless Solutions | Loctek Ergonomic vs. Hengdian Entertainment Co | Loctek Ergonomic vs. Dook Media Group |
| Guangdong Wens vs. Ming Yang Smart | Guangdong Wens vs. 159681 | Guangdong Wens vs. 159005 | Guangdong Wens 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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