Correlation Between Loctek Ergonomic and China Universal
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By analyzing existing cross correlation between Loctek Ergonomic Technology and China Universal CS, you can compare the effects of market volatilities on Loctek Ergonomic and China Universal 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 China Universal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and China Universal.
Diversification Opportunities for Loctek Ergonomic and China Universal
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Loctek and China is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and China Universal CS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Universal CS 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 China Universal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Universal CS has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and China Universal go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and China Universal
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to generate 1.39 times more return on investment than China Universal. However, Loctek Ergonomic is 1.39 times more volatile than China Universal CS. It trades about 0.13 of its potential returns per unit of risk. China Universal CS is currently generating about 0.16 per unit of risk. If you would invest 1,383 in Loctek Ergonomic Technology on September 2, 2024 and sell it today you would earn a total of 350.00 from holding Loctek Ergonomic Technology or generate 25.31% 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. China Universal CS
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| China Universal CS |
Loctek Ergonomic and China Universal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and China Universal
The main advantage of trading using opposite Loctek Ergonomic and China Universal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, China Universal 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 China Universal will offset losses from the drop in China Universal's long position.| Loctek Ergonomic vs. Zhuhai Comleader Information | Loctek Ergonomic vs. YLZ Information Tech | Loctek Ergonomic vs. Longmaster Information Tech | Loctek Ergonomic vs. Fujian Boss Software |
| China Universal vs. Shenzhen MTC Co | China Universal vs. Ming Yang Smart | China Universal vs. 159681 | China Universal 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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