Correlation Between Loctek Ergonomic and Ligao Foods
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Ligao Foods CoLtd, you can compare the effects of market volatilities on Loctek Ergonomic and Ligao Foods 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 Ligao Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Ligao Foods.
Diversification Opportunities for Loctek Ergonomic and Ligao Foods
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Loctek and Ligao is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Ligao Foods CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ligao Foods CoLtd 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 Ligao Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ligao Foods CoLtd has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Ligao Foods go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Ligao Foods
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to under-perform the Ligao Foods. But the stock apears to be less risky and, when comparing its historical volatility, Loctek Ergonomic Technology is 1.88 times less risky than Ligao Foods. The stock trades about -0.22 of its potential returns per unit of risk. The Ligao Foods CoLtd is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 3,585 in Ligao Foods CoLtd on September 28, 2024 and sell it today you would earn a total of 481.00 from holding Ligao Foods CoLtd or generate 13.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Loctek Ergonomic Technology vs. Ligao Foods CoLtd
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Ligao Foods CoLtd |
Loctek Ergonomic and Ligao Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Ligao Foods
The main advantage of trading using opposite Loctek Ergonomic and Ligao Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Ligao Foods 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 Ligao Foods will offset losses from the drop in Ligao Foods' long position.| Loctek Ergonomic vs. AVCON Information Tech | Loctek Ergonomic vs. ZJBC Information Technology | Loctek Ergonomic vs. Pengxin International Mining | Loctek Ergonomic vs. Longmaster Information Tech |
| Ligao Foods vs. Ming Yang Smart | Ligao Foods vs. 159681 | Ligao Foods vs. 159005 | Ligao Foods 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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