Correlation Between Loctek Ergonomic and Gansu Jiu
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Gansu Jiu Steel, you can compare the effects of market volatilities on Loctek Ergonomic and Gansu Jiu 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 Gansu Jiu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Gansu Jiu.
Diversification Opportunities for Loctek Ergonomic and Gansu Jiu
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Loctek and Gansu is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Gansu Jiu Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Jiu Steel 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 Gansu Jiu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Jiu Steel has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Gansu Jiu go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Gansu Jiu
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to generate 1.43 times more return on investment than Gansu Jiu. However, Loctek Ergonomic is 1.43 times more volatile than Gansu Jiu Steel. It trades about 0.11 of its potential returns per unit of risk. Gansu Jiu Steel is currently generating about -0.07 per unit of risk. If you would invest 1,504 in Loctek Ergonomic Technology on November 4, 2024 and sell it today you would earn a total of 58.00 from holding Loctek Ergonomic Technology or generate 3.86% 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. Gansu Jiu Steel
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Gansu Jiu Steel |
Loctek Ergonomic and Gansu Jiu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Gansu Jiu
The main advantage of trading using opposite Loctek Ergonomic and Gansu Jiu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Gansu Jiu 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 Gansu Jiu will offset losses from the drop in Gansu Jiu's long position.| Loctek Ergonomic vs. Dr Peng Telecom | Loctek Ergonomic vs. Shenyang Chemical Industry | Loctek Ergonomic vs. Tianjin Hi Tech Development | Loctek Ergonomic vs. Liuzhou Chemical Industry |
| Gansu Jiu vs. Eyebright Medical Technology | Gansu Jiu vs. FSPG Hi Tech Co | Gansu Jiu vs. Hengkang Medical Group | Gansu Jiu 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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