Correlation Between Loctek Ergonomic and Sinomach General
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Sinomach General Machinery, you can compare the effects of market volatilities on Loctek Ergonomic and Sinomach General 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 Sinomach General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Sinomach General.
Diversification Opportunities for Loctek Ergonomic and Sinomach General
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Loctek and Sinomach is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Sinomach General Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinomach General Mac 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 Sinomach General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinomach General Mac has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Sinomach General go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Sinomach General
Assuming the 90 days trading horizon Loctek Ergonomic is expected to generate 1.79 times less return on investment than Sinomach General. But when comparing it to its historical volatility, Loctek Ergonomic Technology is 1.26 times less risky than Sinomach General. It trades about 0.05 of its potential returns per unit of risk. Sinomach General Machinery is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,219 in Sinomach General Machinery on October 26, 2024 and sell it today you would earn a total of 298.00 from holding Sinomach General Machinery or generate 24.45% 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. Sinomach General Machinery
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Sinomach General Mac |
Loctek Ergonomic and Sinomach General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Sinomach General
The main advantage of trading using opposite Loctek Ergonomic and Sinomach General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Sinomach General 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 Sinomach General will offset losses from the drop in Sinomach General's long position.| Loctek Ergonomic vs. Shandong Sanyuan Biotechnology | Loctek Ergonomic vs. Guizhou Chanhen Chemical | Loctek Ergonomic vs. Guangdong Marubi Biotechnology | Loctek Ergonomic vs. Xilong Chemical Co |
| Sinomach General vs. Ming Yang Smart | Sinomach General vs. 159681 | Sinomach General vs. 159005 | Sinomach General 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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