Correlation Between Loctek Ergonomic and Beijing Sanyuan
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Beijing Sanyuan Foods, you can compare the effects of market volatilities on Loctek Ergonomic and Beijing Sanyuan 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 Beijing Sanyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Beijing Sanyuan.
Diversification Opportunities for Loctek Ergonomic and Beijing Sanyuan
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Loctek and Beijing is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Beijing Sanyuan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Sanyuan Foods 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 Beijing Sanyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Sanyuan Foods has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Beijing Sanyuan go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Beijing Sanyuan
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to under-perform the Beijing Sanyuan. But the stock apears to be less risky and, when comparing its historical volatility, Loctek Ergonomic Technology is 1.49 times less risky than Beijing Sanyuan. The stock trades about -0.28 of its potential returns per unit of risk. The Beijing Sanyuan Foods is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 440.00 in Beijing Sanyuan Foods on September 27, 2024 and sell it today you would earn a total of 9.00 from holding Beijing Sanyuan Foods or generate 2.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loctek Ergonomic Technology vs. Beijing Sanyuan Foods
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Beijing Sanyuan Foods |
Loctek Ergonomic and Beijing Sanyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Beijing Sanyuan
The main advantage of trading using opposite Loctek Ergonomic and Beijing Sanyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Beijing Sanyuan 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 Beijing Sanyuan will offset losses from the drop in Beijing Sanyuan's long position.| Loctek Ergonomic vs. Heilongjiang Publishing Media | Loctek Ergonomic vs. Quectel Wireless Solutions | Loctek Ergonomic vs. Hengdian Entertainment Co | Loctek Ergonomic vs. Dook Media Group |
| Beijing Sanyuan vs. Ming Yang Smart | Beijing Sanyuan vs. 159681 | Beijing Sanyuan vs. 159005 | Beijing Sanyuan 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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