Correlation Between Loctek Ergonomic and Beijing Topnew
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Beijing Topnew Info, you can compare the effects of market volatilities on Loctek Ergonomic and Beijing Topnew 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 Beijing Topnew. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Beijing Topnew.
Diversification Opportunities for Loctek Ergonomic and Beijing Topnew
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Loctek and Beijing is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Beijing Topnew Info in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Topnew Info 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 Beijing Topnew. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Topnew Info has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Beijing Topnew go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Beijing Topnew
Assuming the 90 days trading horizon Loctek Ergonomic is expected to generate 2.5 times less return on investment than Beijing Topnew. But when comparing it to its historical volatility, Loctek Ergonomic Technology is 1.44 times less risky than Beijing Topnew. It trades about 0.06 of its potential returns per unit of risk. Beijing Topnew Info is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 2,439 in Beijing Topnew Info on September 3, 2024 and sell it today you would earn a total of 1,079 from holding Beijing Topnew Info or generate 44.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loctek Ergonomic Technology vs. Beijing Topnew Info
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Beijing Topnew Info |
Loctek Ergonomic and Beijing Topnew Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Beijing Topnew
The main advantage of trading using opposite Loctek Ergonomic and Beijing Topnew positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Beijing Topnew 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 Beijing Topnew will offset losses from the drop in Beijing Topnew's long position.| Loctek Ergonomic vs. Digital China Information | Loctek Ergonomic vs. ButOne Information Corp | Loctek Ergonomic vs. Tianshan Aluminum Group | Loctek Ergonomic vs. Anhui Gujing Distillery |
| Beijing Topnew vs. Agricultural Bank of | Beijing Topnew vs. China Construction Bank | Beijing Topnew vs. Postal Savings Bank | Beijing Topnew vs. Bank of Communications |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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