Correlation Between Loctek Ergonomic and Qingdao Hi
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Qingdao Hi Tech Moulds, you can compare the effects of market volatilities on Loctek Ergonomic and Qingdao Hi 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 Qingdao Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Qingdao Hi.
Diversification Opportunities for Loctek Ergonomic and Qingdao Hi
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Loctek and Qingdao is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Qingdao Hi Tech Moulds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Hi Tech 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 Qingdao Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Hi Tech has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Qingdao Hi go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Qingdao Hi
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to generate 1.16 times more return on investment than Qingdao Hi. However, Loctek Ergonomic is 1.16 times more volatile than Qingdao Hi Tech Moulds. It trades about 0.11 of its potential returns per unit of risk. Qingdao Hi Tech Moulds is currently generating about 0.02 per unit of risk. If you would invest 1,670 in Loctek Ergonomic Technology on September 13, 2024 and sell it today you would earn a total of 96.00 from holding Loctek Ergonomic Technology or generate 5.75% 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. Qingdao Hi Tech Moulds
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Qingdao Hi Tech |
Loctek Ergonomic and Qingdao Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Qingdao Hi
The main advantage of trading using opposite Loctek Ergonomic and Qingdao Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Qingdao Hi 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 Qingdao Hi will offset losses from the drop in Qingdao Hi's long position.| Loctek Ergonomic vs. Sinosteel Engineering and | Loctek Ergonomic vs. Bengang Steel Plates | Loctek Ergonomic vs. Central Plains Environment | Loctek Ergonomic vs. Guangzhou Dongfang Hotel |
| Qingdao Hi vs. Ming Yang Smart | Qingdao Hi vs. 159681 | Qingdao Hi vs. 159005 | Qingdao Hi 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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