Correlation Between Loctek Ergonomic and Longjian Road
Specify exactly 2 symbols:
By analyzing existing cross correlation between Loctek Ergonomic Technology and Longjian Road Bridge, you can compare the effects of market volatilities on Loctek Ergonomic and Longjian Road 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 Longjian Road. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Longjian Road.
Diversification Opportunities for Loctek Ergonomic and Longjian Road
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Loctek and Longjian is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Longjian Road Bridge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Longjian Road Bridge 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 Longjian Road. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Longjian Road Bridge has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Longjian Road go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Longjian Road
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to generate 0.98 times more return on investment than Longjian Road. However, Loctek Ergonomic Technology is 1.02 times less risky than Longjian Road. It trades about 0.04 of its potential returns per unit of risk. Longjian Road Bridge is currently generating about 0.03 per unit of risk. If you would invest 1,337 in Loctek Ergonomic Technology on August 29, 2024 and sell it today you would earn a total of 471.00 from holding Loctek Ergonomic Technology or generate 35.23% 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. Longjian Road Bridge
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Longjian Road Bridge |
Loctek Ergonomic and Longjian Road Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Longjian Road
The main advantage of trading using opposite Loctek Ergonomic and Longjian Road positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Longjian Road 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 Longjian Road will offset losses from the drop in Longjian Road's long position.| Loctek Ergonomic vs. Everjoy Health Group | Loctek Ergonomic vs. PKU HealthCare Corp | Loctek Ergonomic vs. Meinian Onehealth Healthcare | Loctek Ergonomic vs. Anhui Deli Household |
| Longjian Road vs. Guangzhou Jinyi Media | Longjian Road vs. Nexchip Semiconductor Corp | Longjian Road vs. Northern United Publishing | Longjian Road vs. Sportsoul Co Ltd |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |