Correlation Between Loctek Ergonomic and Jiangsu Yueda
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Jiangsu Yueda Investment, you can compare the effects of market volatilities on Loctek Ergonomic and Jiangsu Yueda 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 Jiangsu Yueda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Jiangsu Yueda.
Diversification Opportunities for Loctek Ergonomic and Jiangsu Yueda
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Loctek and Jiangsu is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Jiangsu Yueda Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yueda Investment 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 Jiangsu Yueda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yueda Investment has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Jiangsu Yueda go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Jiangsu Yueda
Assuming the 90 days trading horizon Loctek Ergonomic is expected to generate 4.28 times less return on investment than Jiangsu Yueda. In addition to that, Loctek Ergonomic is 1.12 times more volatile than Jiangsu Yueda Investment. It trades about 0.02 of its total potential returns per unit of risk. Jiangsu Yueda Investment is currently generating about 0.1 per unit of volatility. If you would invest 432.00 in Jiangsu Yueda Investment on August 31, 2024 and sell it today you would earn a total of 44.00 from holding Jiangsu Yueda Investment or generate 10.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 97.5% |
| Values | Daily Returns |
Loctek Ergonomic Technology vs. Jiangsu Yueda Investment
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Jiangsu Yueda Investment |
Loctek Ergonomic and Jiangsu Yueda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Jiangsu Yueda
The main advantage of trading using opposite Loctek Ergonomic and Jiangsu Yueda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Jiangsu Yueda 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 Jiangsu Yueda will offset losses from the drop in Jiangsu Yueda's long position.| Loctek Ergonomic vs. Union Semiconductor Co | Loctek Ergonomic vs. Jinhui Mining Co | Loctek Ergonomic vs. Fujian Oriental Silver | Loctek Ergonomic vs. Southchip Semiconductor Technology |
| Jiangsu Yueda vs. Cultural Investment Holdings | Jiangsu Yueda vs. Gome Telecom Equipment | Jiangsu Yueda vs. Bus Online Co | Jiangsu Yueda vs. Holitech Technology Co |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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