Correlation Between Loctek Ergonomic and BTG Hotels
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By analyzing existing cross correlation between Loctek Ergonomic Technology and BTG Hotels Group, you can compare the effects of market volatilities on Loctek Ergonomic and BTG Hotels 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 BTG Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and BTG Hotels.
Diversification Opportunities for Loctek Ergonomic and BTG Hotels
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Loctek and BTG is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and BTG Hotels Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BTG Hotels Group 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 BTG Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BTG Hotels Group has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and BTG Hotels go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and BTG Hotels
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to generate 1.46 times more return on investment than BTG Hotels. However, Loctek Ergonomic is 1.46 times more volatile than BTG Hotels Group. It trades about 0.03 of its potential returns per unit of risk. BTG Hotels Group is currently generating about 0.01 per unit of risk. If you would invest 1,563 in Loctek Ergonomic Technology on September 14, 2024 and sell it today you would earn a total of 203.00 from holding Loctek Ergonomic Technology or generate 12.99% 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. BTG Hotels Group
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| BTG Hotels Group |
Loctek Ergonomic and BTG Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and BTG Hotels
The main advantage of trading using opposite Loctek Ergonomic and BTG Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, BTG Hotels 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 BTG Hotels will offset losses from the drop in BTG Hotels' long position.| Loctek Ergonomic vs. Sinosteel Engineering and | Loctek Ergonomic vs. Bengang Steel Plates | Loctek Ergonomic vs. Central Plains Environment | Loctek Ergonomic vs. Guangzhou Dongfang Hotel |
| BTG Hotels vs. Iat Automobile Technology | BTG Hotels vs. Shaanxi Broadcast TV | BTG Hotels vs. Zhengping RoadBridge Constr | BTG Hotels vs. Maxvision Technology Corp |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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