Correlation Between Loctek Ergonomic and Penyao Environmental
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Penyao Environmental Protection, you can compare the effects of market volatilities on Loctek Ergonomic and Penyao Environmental 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 Penyao Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Penyao Environmental.
Diversification Opportunities for Loctek Ergonomic and Penyao Environmental
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Loctek and Penyao is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Penyao Environmental Protectio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Penyao Environmental 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 Penyao Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Penyao Environmental has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Penyao Environmental go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Penyao Environmental
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to generate 0.68 times more return on investment than Penyao Environmental. However, Loctek Ergonomic Technology is 1.47 times less risky than Penyao Environmental. It trades about -0.18 of its potential returns per unit of risk. Penyao Environmental Protection is currently generating about -0.18 per unit of risk. If you would invest 1,701 in Loctek Ergonomic Technology on October 10, 2024 and sell it today you would lose (143.00) from holding Loctek Ergonomic Technology or give up 8.41% 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. Penyao Environmental Protectio
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Penyao Environmental |
Loctek Ergonomic and Penyao Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Penyao Environmental
The main advantage of trading using opposite Loctek Ergonomic and Penyao Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Penyao Environmental 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 Penyao Environmental will offset losses from the drop in Penyao Environmental's long position.| Loctek Ergonomic vs. Holitech Technology Co | Loctek Ergonomic vs. Kuangda Technology Group | Loctek Ergonomic vs. Guangdong Xiongsu Technology | Loctek Ergonomic vs. Jiajia Food Group |
| Penyao Environmental vs. Ming Yang Smart | Penyao Environmental vs. 159681 | Penyao Environmental vs. 159005 | Penyao Environmental 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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