Correlation Between Loctek Ergonomic and Guangdong Jinma
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Guangdong Jinma Entertainment, you can compare the effects of market volatilities on Loctek Ergonomic and Guangdong Jinma 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 Jinma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Guangdong Jinma.
Diversification Opportunities for Loctek Ergonomic and Guangdong Jinma
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Loctek and Guangdong is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Guangdong Jinma Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Jinma Ente 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 Jinma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Jinma Ente has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Guangdong Jinma go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Guangdong Jinma
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to under-perform the Guangdong Jinma. But the stock apears to be less risky and, when comparing its historical volatility, Loctek Ergonomic Technology is 1.48 times less risky than Guangdong Jinma. The stock trades about -0.03 of its potential returns per unit of risk. The Guangdong Jinma Entertainment is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,468 in Guangdong Jinma Entertainment on November 6, 2024 and sell it today you would earn a total of 196.00 from holding Guangdong Jinma Entertainment or generate 13.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loctek Ergonomic Technology vs. Guangdong Jinma Entertainment
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Guangdong Jinma Ente |
Loctek Ergonomic and Guangdong Jinma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Guangdong Jinma
The main advantage of trading using opposite Loctek Ergonomic and Guangdong Jinma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Guangdong Jinma 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 Jinma will offset losses from the drop in Guangdong Jinma's long position.| Loctek Ergonomic vs. Integrated Electronic Systems | Loctek Ergonomic vs. Dongnan Electronics Co | Loctek Ergonomic vs. Epoxy Base Electronic | Loctek Ergonomic vs. Beijing Kingsoft Office |
| Guangdong Jinma vs. Anhui Deli Household | Guangdong Jinma vs. Sichuan Fulin Transportation | Guangdong Jinma vs. Shuhua Sports Co | Guangdong Jinma vs. Shenzhen Zqgame |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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