Correlation Between Loctek Ergonomic and Hainan Airlines
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Hainan Airlines Co, you can compare the effects of market volatilities on Loctek Ergonomic and Hainan Airlines 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 Hainan Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Hainan Airlines.
Diversification Opportunities for Loctek Ergonomic and Hainan Airlines
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Loctek and Hainan is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Hainan Airlines Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Airlines 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 Hainan Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Airlines has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Hainan Airlines go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Hainan Airlines
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to generate 1.29 times more return on investment than Hainan Airlines. However, Loctek Ergonomic is 1.29 times more volatile than Hainan Airlines Co. It trades about 0.24 of its potential returns per unit of risk. Hainan Airlines Co is currently generating about -0.17 per unit of risk. If you would invest 1,562 in Loctek Ergonomic Technology on November 28, 2024 and sell it today you would earn a total of 144.00 from holding Loctek Ergonomic Technology or generate 9.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.12% |
| Values | Daily Returns |
Loctek Ergonomic Technology vs. Hainan Airlines Co
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Hainan Airlines |
Loctek Ergonomic and Hainan Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Hainan Airlines
The main advantage of trading using opposite Loctek Ergonomic and Hainan Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Hainan Airlines 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 Hainan Airlines will offset losses from the drop in Hainan Airlines' long position.| Loctek Ergonomic vs. Qingdao Foods Co | Loctek Ergonomic vs. Porton Fine Chemicals | Loctek Ergonomic vs. Pinlive Foods Co | Loctek Ergonomic vs. MayAir Technology Co |
| Hainan Airlines vs. Quectel Wireless Solutions | Hainan Airlines vs. Jinsanjiang Silicon Material | Hainan Airlines vs. Huizhou Speed Wireless | Hainan Airlines vs. Xizi Clean Energy |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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