Correlation Between Loctek Ergonomic and Eit Environmental
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Eit Environmental Development, you can compare the effects of market volatilities on Loctek Ergonomic and Eit 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 Eit Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Eit Environmental.
Diversification Opportunities for Loctek Ergonomic and Eit Environmental
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Loctek and Eit is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Eit Environmental Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eit 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 Eit Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eit Environmental has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Eit Environmental go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Eit Environmental
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to under-perform the Eit Environmental. In addition to that, Loctek Ergonomic is 1.14 times more volatile than Eit Environmental Development. It trades about -0.32 of its total potential returns per unit of risk. Eit Environmental Development is currently generating about -0.33 per unit of volatility. If you would invest 1,624 in Eit Environmental Development on October 14, 2024 and sell it today you would lose (202.00) from holding Eit Environmental Development or give up 12.44% 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. Eit Environmental Development
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Eit Environmental |
Loctek Ergonomic and Eit Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Eit Environmental
The main advantage of trading using opposite Loctek Ergonomic and Eit Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Eit 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 Eit Environmental will offset losses from the drop in Eit Environmental's long position.| Loctek Ergonomic vs. Jinxiandai Information Industry | Loctek Ergonomic vs. Shenzhen SDG Information | Loctek Ergonomic vs. Ningxia Younglight Chemicals | Loctek Ergonomic vs. Dawning Information Industry |
| Eit Environmental vs. Shenzhen MYS Environmental | Eit Environmental vs. AVIC Fund Management | Eit Environmental vs. Rongan Property Co | Eit Environmental vs. Haoxiangni Jujube Co |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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