Correlation Between Loctek Ergonomic and Dook Media
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Dook Media Group, you can compare the effects of market volatilities on Loctek Ergonomic and Dook Media 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 Dook Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Dook Media.
Diversification Opportunities for Loctek Ergonomic and Dook Media
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Loctek and Dook is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Dook Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dook Media Group 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 Dook Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dook Media Group has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Dook Media go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Dook Media
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to generate 0.66 times more return on investment than Dook Media. However, Loctek Ergonomic Technology is 1.52 times less risky than Dook Media. It trades about 0.05 of its potential returns per unit of risk. Dook Media Group is currently generating about 0.02 per unit of risk. If you would invest 1,363 in Loctek Ergonomic Technology on September 3, 2024 and sell it today you would earn a total of 370.00 from holding Loctek Ergonomic Technology or generate 27.15% 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. Dook Media Group
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Dook Media Group |
Loctek Ergonomic and Dook Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Dook Media
The main advantage of trading using opposite Loctek Ergonomic and Dook Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Dook Media 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 Dook Media will offset losses from the drop in Dook Media'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 |
| Dook Media vs. Gansu Jiu Steel | Dook Media vs. Ming Yang Smart | Dook Media vs. Aba Chemicals Corp | Dook Media 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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