Correlation Between Loctek Ergonomic and Chinese Universe
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Chinese Universe Publishing, you can compare the effects of market volatilities on Loctek Ergonomic and Chinese Universe 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 Chinese Universe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Chinese Universe.
Diversification Opportunities for Loctek Ergonomic and Chinese Universe
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Loctek and Chinese is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Chinese Universe Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chinese Universe Pub 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 Chinese Universe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chinese Universe Pub has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Chinese Universe go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Chinese Universe
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to generate 1.32 times more return on investment than Chinese Universe. However, Loctek Ergonomic is 1.32 times more volatile than Chinese Universe Publishing. It trades about 0.11 of its potential returns per unit of risk. Chinese Universe Publishing is currently generating about 0.12 per unit of risk. If you would invest 1,670 in Loctek Ergonomic Technology on September 13, 2024 and sell it today you would earn a total of 96.00 from holding Loctek Ergonomic Technology or generate 5.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loctek Ergonomic Technology vs. Chinese Universe Publishing
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Chinese Universe Pub |
Loctek Ergonomic and Chinese Universe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Chinese Universe
The main advantage of trading using opposite Loctek Ergonomic and Chinese Universe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Chinese Universe 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 Chinese Universe will offset losses from the drop in Chinese Universe's 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 |
| Chinese Universe vs. Ming Yang Smart | Chinese Universe vs. 159681 | Chinese Universe vs. 159005 | Chinese Universe 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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