Correlation Between Loctek Ergonomic and Kunwu Jiuding
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Kunwu Jiuding Investment, you can compare the effects of market volatilities on Loctek Ergonomic and Kunwu Jiuding 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 Kunwu Jiuding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Kunwu Jiuding.
Diversification Opportunities for Loctek Ergonomic and Kunwu Jiuding
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Loctek and Kunwu is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Kunwu Jiuding Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kunwu Jiuding Investment 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 Kunwu Jiuding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kunwu Jiuding Investment has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Kunwu Jiuding go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Kunwu Jiuding
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to under-perform the Kunwu Jiuding. In addition to that, Loctek Ergonomic is 1.07 times more volatile than Kunwu Jiuding Investment. It trades about -0.14 of its total potential returns per unit of risk. Kunwu Jiuding Investment is currently generating about -0.05 per unit of volatility. If you would invest 1,517 in Kunwu Jiuding Investment on September 25, 2024 and sell it today you would lose (46.00) from holding Kunwu Jiuding Investment or give up 3.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Loctek Ergonomic Technology vs. Kunwu Jiuding Investment
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Kunwu Jiuding Investment |
Loctek Ergonomic and Kunwu Jiuding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Kunwu Jiuding
The main advantage of trading using opposite Loctek Ergonomic and Kunwu Jiuding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Kunwu Jiuding 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 Kunwu Jiuding will offset losses from the drop in Kunwu Jiuding's long position.| Loctek Ergonomic vs. Ming Yang Smart | Loctek Ergonomic vs. 159681 | Loctek Ergonomic vs. 159005 | Loctek Ergonomic vs. Yes Optoelectronics Co |
| Kunwu Jiuding vs. Ming Yang Smart | Kunwu Jiuding vs. 159681 | Kunwu Jiuding vs. 159005 | Kunwu Jiuding 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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