Correlation Between Loctek Ergonomic and Zhejiang Daily
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Zhejiang Daily Media, you can compare the effects of market volatilities on Loctek Ergonomic and Zhejiang Daily 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 Zhejiang Daily. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Zhejiang Daily.
Diversification Opportunities for Loctek Ergonomic and Zhejiang Daily
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Loctek and Zhejiang is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Zhejiang Daily Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Daily Media 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 Zhejiang Daily. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Daily Media has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Zhejiang Daily go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Zhejiang Daily
Assuming the 90 days trading horizon Loctek Ergonomic is expected to generate 1.42 times less return on investment than Zhejiang Daily. But when comparing it to its historical volatility, Loctek Ergonomic Technology is 1.08 times less risky than Zhejiang Daily. It trades about 0.09 of its potential returns per unit of risk. Zhejiang Daily Media is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,021 in Zhejiang Daily Media on September 13, 2024 and sell it today you would earn a total of 124.00 from holding Zhejiang Daily Media or generate 12.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loctek Ergonomic Technology vs. Zhejiang Daily Media
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Zhejiang Daily Media |
Loctek Ergonomic and Zhejiang Daily Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Zhejiang Daily
The main advantage of trading using opposite Loctek Ergonomic and Zhejiang Daily positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Zhejiang Daily 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 Zhejiang Daily will offset losses from the drop in Zhejiang Daily's long position.| Loctek Ergonomic vs. Yuan Longping High tech | Loctek Ergonomic vs. Jinhe Biotechnology Co | Loctek Ergonomic vs. Bus Online Co | Loctek Ergonomic vs. Haima Automobile Group |
| Zhejiang Daily vs. Ming Yang Smart | Zhejiang Daily vs. 159681 | Zhejiang Daily vs. 159005 | Zhejiang Daily 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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