Correlation Between Loctek Ergonomic and Shandong Sanyuan
Specify exactly 2 symbols:
By analyzing existing cross correlation between Loctek Ergonomic Technology and Shandong Sanyuan Biotechnology, you can compare the effects of market volatilities on Loctek Ergonomic and Shandong Sanyuan 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 Shandong Sanyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Shandong Sanyuan.
Diversification Opportunities for Loctek Ergonomic and Shandong Sanyuan
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Loctek and Shandong is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Shandong Sanyuan Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Sanyuan Bio 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 Shandong Sanyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Sanyuan Bio has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Shandong Sanyuan go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Shandong Sanyuan
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to under-perform the Shandong Sanyuan. In addition to that, Loctek Ergonomic is 1.07 times more volatile than Shandong Sanyuan Biotechnology. It trades about -0.22 of its total potential returns per unit of risk. Shandong Sanyuan Biotechnology is currently generating about 0.06 per unit of volatility. If you would invest 2,723 in Shandong Sanyuan Biotechnology on September 28, 2024 and sell it today you would earn a total of 68.00 from holding Shandong Sanyuan Biotechnology or generate 2.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loctek Ergonomic Technology vs. Shandong Sanyuan Biotechnology
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Shandong Sanyuan Bio |
Loctek Ergonomic and Shandong Sanyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Shandong Sanyuan
The main advantage of trading using opposite Loctek Ergonomic and Shandong Sanyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Shandong Sanyuan 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 Shandong Sanyuan will offset losses from the drop in Shandong Sanyuan's 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 |
| Shandong Sanyuan vs. Ming Yang Smart | Shandong Sanyuan vs. 159681 | Shandong Sanyuan vs. 159005 | Shandong Sanyuan 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |