Correlation Between Loctek Ergonomic and China Marine
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By analyzing existing cross correlation between Loctek Ergonomic Technology and China Marine Information, you can compare the effects of market volatilities on Loctek Ergonomic and China Marine 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 China Marine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and China Marine.
Diversification Opportunities for Loctek Ergonomic and China Marine
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Loctek and China is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and China Marine Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Marine Information 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 China Marine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Marine Information has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and China Marine go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and China Marine
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to generate 0.92 times more return on investment than China Marine. However, Loctek Ergonomic Technology is 1.09 times less risky than China Marine. It trades about 0.16 of its potential returns per unit of risk. China Marine Information is currently generating about -0.32 per unit of risk. If you would invest 1,596 in Loctek Ergonomic Technology on September 1, 2024 and sell it today you would earn a total of 137.00 from holding Loctek Ergonomic Technology or generate 8.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Loctek Ergonomic Technology vs. China Marine Information
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| China Marine Information |
Loctek Ergonomic and China Marine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and China Marine
The main advantage of trading using opposite Loctek Ergonomic and China Marine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, China Marine 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 China Marine will offset losses from the drop in China Marine's long position.| Loctek Ergonomic vs. Focus Media Information | Loctek Ergonomic vs. YLZ Information Tech | Loctek Ergonomic vs. Hangzhou Gisway Information | Loctek Ergonomic vs. Yonyou Auto Information |
| China Marine vs. Ming Yang Smart | China Marine vs. 159681 | China Marine vs. 159005 | China Marine 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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