Correlation Between Loctek Ergonomic and GuoChuang Software
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By analyzing existing cross correlation between Loctek Ergonomic Technology and GuoChuang Software Co, you can compare the effects of market volatilities on Loctek Ergonomic and GuoChuang Software 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 GuoChuang Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and GuoChuang Software.
Diversification Opportunities for Loctek Ergonomic and GuoChuang Software
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Loctek and GuoChuang is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and GuoChuang Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GuoChuang Software 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 GuoChuang Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GuoChuang Software has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and GuoChuang Software go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and GuoChuang Software
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to generate 0.5 times more return on investment than GuoChuang Software. However, Loctek Ergonomic Technology is 2.01 times less risky than GuoChuang Software. It trades about 0.22 of its potential returns per unit of risk. GuoChuang Software Co is currently generating about 0.1 per unit of risk. If you would invest 1,554 in Loctek Ergonomic Technology on September 2, 2024 and sell it today you would earn a total of 179.00 from holding Loctek Ergonomic Technology or generate 11.52% 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. GuoChuang Software Co
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| GuoChuang Software |
Loctek Ergonomic and GuoChuang Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and GuoChuang Software
The main advantage of trading using opposite Loctek Ergonomic and GuoChuang Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, GuoChuang Software 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 GuoChuang Software will offset losses from the drop in GuoChuang Software's long position.| Loctek Ergonomic vs. Zhuhai Comleader Information | Loctek Ergonomic vs. YLZ Information Tech | Loctek Ergonomic vs. Longmaster Information Tech | Loctek Ergonomic vs. Fujian Boss Software |
| GuoChuang Software vs. Ming Yang Smart | GuoChuang Software vs. 159681 | GuoChuang Software vs. 159005 | GuoChuang Software 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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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