Correlation Between Loctek Ergonomic and Panda Dairy
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Panda Dairy Corp, you can compare the effects of market volatilities on Loctek Ergonomic and Panda Dairy 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 Panda Dairy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Panda Dairy.
Diversification Opportunities for Loctek Ergonomic and Panda Dairy
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Loctek and Panda is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Panda Dairy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Panda Dairy Corp 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 Panda Dairy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Panda Dairy Corp has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Panda Dairy go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Panda Dairy
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to under-perform the Panda Dairy. But the stock apears to be less risky and, when comparing its historical volatility, Loctek Ergonomic Technology is 2.94 times less risky than Panda Dairy. The stock trades about -0.14 of its potential returns per unit of risk. The Panda Dairy Corp is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 2,156 in Panda Dairy Corp on September 25, 2024 and sell it today you would earn a total of 634.00 from holding Panda Dairy Corp or generate 29.41% 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. Panda Dairy Corp
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Panda Dairy Corp |
Loctek Ergonomic and Panda Dairy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Panda Dairy
The main advantage of trading using opposite Loctek Ergonomic and Panda Dairy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Panda Dairy 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 Panda Dairy will offset losses from the drop in Panda Dairy's long position.| Loctek Ergonomic vs. Ming Yang Smart | Loctek Ergonomic vs. 159681 | Loctek Ergonomic vs. 159005 | Loctek Ergonomic vs. Yes Optoelectronics Co |
| Panda Dairy vs. Ming Yang Smart | Panda Dairy vs. 159681 | Panda Dairy vs. 159005 | Panda Dairy 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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