Correlation Between Loctek Ergonomic and Tianjin Capital
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Tianjin Capital Environmental, you can compare the effects of market volatilities on Loctek Ergonomic and Tianjin Capital 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 Tianjin Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Tianjin Capital.
Diversification Opportunities for Loctek Ergonomic and Tianjin Capital
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Loctek and Tianjin is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Tianjin Capital Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Capital Envi 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 Tianjin Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Capital Envi has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Tianjin Capital go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Tianjin Capital
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to under-perform the Tianjin Capital. In addition to that, Loctek Ergonomic is 1.9 times more volatile than Tianjin Capital Environmental. It trades about -0.28 of its total potential returns per unit of risk. Tianjin Capital Environmental is currently generating about 0.04 per unit of volatility. If you would invest 591.00 in Tianjin Capital Environmental on September 27, 2024 and sell it today you would earn a total of 6.00 from holding Tianjin Capital Environmental or generate 1.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loctek Ergonomic Technology vs. Tianjin Capital Environmental
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Tianjin Capital Envi |
Loctek Ergonomic and Tianjin Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Tianjin Capital
The main advantage of trading using opposite Loctek Ergonomic and Tianjin Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Tianjin Capital 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 Tianjin Capital will offset losses from the drop in Tianjin Capital's long position.| Loctek Ergonomic vs. Heilongjiang Publishing Media | Loctek Ergonomic vs. Quectel Wireless Solutions | Loctek Ergonomic vs. Hengdian Entertainment Co | Loctek Ergonomic vs. Dook Media Group |
| Tianjin Capital vs. Ming Yang Smart | Tianjin Capital vs. 159681 | Tianjin Capital vs. 159005 | Tianjin Capital 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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