Correlation Between Loctek Ergonomic and Minmetals Capital
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Minmetals Capital Co, you can compare the effects of market volatilities on Loctek Ergonomic and Minmetals Capital 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 Minmetals Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Minmetals Capital.
Diversification Opportunities for Loctek Ergonomic and Minmetals Capital
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Loctek and Minmetals is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Minmetals Capital Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minmetals Capital 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 Minmetals Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minmetals Capital has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Minmetals Capital go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Minmetals Capital
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to generate 1.24 times more return on investment than Minmetals Capital. However, Loctek Ergonomic is 1.24 times more volatile than Minmetals Capital Co. It trades about 0.04 of its potential returns per unit of risk. Minmetals Capital Co is currently generating about 0.04 per unit of risk. If you would invest 1,227 in Loctek Ergonomic Technology on September 12, 2024 and sell it today you would earn a total of 474.00 from holding Loctek Ergonomic Technology or generate 38.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loctek Ergonomic Technology vs. Minmetals Capital Co
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Minmetals Capital |
Loctek Ergonomic and Minmetals Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Minmetals Capital
The main advantage of trading using opposite Loctek Ergonomic and Minmetals Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Minmetals Capital 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 Minmetals Capital will offset losses from the drop in Minmetals Capital's long position.| Loctek Ergonomic vs. Uxi Unicomp Technology | Loctek Ergonomic vs. Maxvision Technology Corp | Loctek Ergonomic vs. Olympic Circuit Technology | Loctek Ergonomic vs. Shandong Sanyuan Biotechnology |
| Minmetals Capital vs. China Petroleum Chemical | Minmetals Capital vs. PetroChina Co Ltd | Minmetals Capital vs. China Mobile Limited | Minmetals Capital vs. Industrial and Commercial |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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