Correlation Between Loctek Ergonomic and Hengerda New
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Hengerda New Materials, you can compare the effects of market volatilities on Loctek Ergonomic and Hengerda New 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 Hengerda New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Hengerda New.
Diversification Opportunities for Loctek Ergonomic and Hengerda New
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Loctek and Hengerda is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Hengerda New Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengerda New Materials 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 Hengerda New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hengerda New Materials has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Hengerda New go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Hengerda New
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to generate 0.76 times more return on investment than Hengerda New. However, Loctek Ergonomic Technology is 1.31 times less risky than Hengerda New. It trades about -0.27 of its potential returns per unit of risk. Hengerda New Materials is currently generating about -0.28 per unit of risk. If you would invest 1,700 in Loctek Ergonomic Technology on October 7, 2024 and sell it today you would lose (196.00) from holding Loctek Ergonomic Technology or give up 11.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loctek Ergonomic Technology vs. Hengerda New Materials
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Hengerda New Materials |
Loctek Ergonomic and Hengerda New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Hengerda New
The main advantage of trading using opposite Loctek Ergonomic and Hengerda New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Hengerda New 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 Hengerda New will offset losses from the drop in Hengerda New's long position.| Loctek Ergonomic vs. Harbin Hatou Investment | Loctek Ergonomic vs. Postal Savings Bank | Loctek Ergonomic vs. Xiandai Investment Co | Loctek Ergonomic vs. Anhui Transport Consulting |
| Hengerda New vs. BeiGene | Hengerda New vs. G bits Network Technology | Hengerda New vs. China Mobile Limited | Hengerda New vs. Gansu Jiu Steel |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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