Correlation Between Loctek Ergonomic and Harbin Air
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Harbin Air Conditioning, you can compare the effects of market volatilities on Loctek Ergonomic and Harbin Air 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 Harbin Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Harbin Air.
Diversification Opportunities for Loctek Ergonomic and Harbin Air
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Loctek and Harbin is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Harbin Air Conditioning in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbin Air Conditioning 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 Harbin Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbin Air Conditioning has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Harbin Air go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Harbin Air
Assuming the 90 days trading horizon Loctek Ergonomic is expected to generate 1.94 times less return on investment than Harbin Air. But when comparing it to its historical volatility, Loctek Ergonomic Technology is 2.63 times less risky than Harbin Air. It trades about 0.11 of its potential returns per unit of risk. Harbin Air Conditioning is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 423.00 in Harbin Air Conditioning on November 6, 2024 and sell it today you would earn a total of 23.00 from holding Harbin Air Conditioning or generate 5.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loctek Ergonomic Technology vs. Harbin Air Conditioning
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Harbin Air Conditioning |
Loctek Ergonomic and Harbin Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Harbin Air
The main advantage of trading using opposite Loctek Ergonomic and Harbin Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Harbin Air 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 Harbin Air will offset losses from the drop in Harbin Air's long position.| Loctek Ergonomic vs. Integrated Electronic Systems | Loctek Ergonomic vs. Dongnan Electronics Co | Loctek Ergonomic vs. Epoxy Base Electronic | Loctek Ergonomic vs. Beijing Kingsoft Office |
| Harbin Air vs. Suzhou Weizhixiang Food | Harbin Air vs. Jiahe Foods Industry | Harbin Air vs. Guilin Seamild Foods | Harbin Air vs. Zhejiang Huatong Meat |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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