Correlation Between Loctek Ergonomic and Zhangjiagang Freetrade
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Zhangjiagang Freetrade Science, you can compare the effects of market volatilities on Loctek Ergonomic and Zhangjiagang Freetrade 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 Zhangjiagang Freetrade. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Zhangjiagang Freetrade.
Diversification Opportunities for Loctek Ergonomic and Zhangjiagang Freetrade
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Loctek and Zhangjiagang is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Zhangjiagang Freetrade Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhangjiagang Freetrade 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 Zhangjiagang Freetrade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhangjiagang Freetrade has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Zhangjiagang Freetrade go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Zhangjiagang Freetrade
Assuming the 90 days trading horizon Loctek Ergonomic is expected to generate 1.15 times less return on investment than Zhangjiagang Freetrade. But when comparing it to its historical volatility, Loctek Ergonomic Technology is 1.32 times less risky than Zhangjiagang Freetrade. It trades about 0.21 of its potential returns per unit of risk. Zhangjiagang Freetrade Science is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 336.00 in Zhangjiagang Freetrade Science on August 30, 2024 and sell it today you would earn a total of 43.00 from holding Zhangjiagang Freetrade Science or generate 12.8% 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. Zhangjiagang Freetrade Science
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Zhangjiagang Freetrade |
Loctek Ergonomic and Zhangjiagang Freetrade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Zhangjiagang Freetrade
The main advantage of trading using opposite Loctek Ergonomic and Zhangjiagang Freetrade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Zhangjiagang Freetrade 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 Zhangjiagang Freetrade will offset losses from the drop in Zhangjiagang Freetrade's long position.| Loctek Ergonomic vs. Air China Ltd | Loctek Ergonomic vs. Duzhe Publishing Media | Loctek Ergonomic vs. AVCON Information Tech | Loctek Ergonomic vs. YLZ Information Tech |
| Zhangjiagang Freetrade vs. BYD Co Ltd | Zhangjiagang Freetrade vs. China Mobile Limited | Zhangjiagang Freetrade vs. Agricultural Bank of | Zhangjiagang Freetrade 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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