Correlation Between Loctek Ergonomic and Jinling Hotel
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Jinling Hotel Corp, you can compare the effects of market volatilities on Loctek Ergonomic and Jinling Hotel 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 Jinling Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Jinling Hotel.
Diversification Opportunities for Loctek Ergonomic and Jinling Hotel
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Loctek and Jinling is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Jinling Hotel Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinling Hotel Corp 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 Jinling Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinling Hotel Corp has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Jinling Hotel go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Jinling Hotel
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to generate 1.29 times more return on investment than Jinling Hotel. However, Loctek Ergonomic is 1.29 times more volatile than Jinling Hotel Corp. It trades about 0.03 of its potential returns per unit of risk. Jinling Hotel Corp is currently generating about -0.02 per unit of risk. If you would invest 1,244 in Loctek Ergonomic Technology on December 4, 2024 and sell it today you would earn a total of 354.00 from holding Loctek Ergonomic Technology or generate 28.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loctek Ergonomic Technology vs. Jinling Hotel Corp
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Jinling Hotel Corp |
Loctek Ergonomic and Jinling Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Jinling Hotel
The main advantage of trading using opposite Loctek Ergonomic and Jinling Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Jinling Hotel 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 Jinling Hotel will offset losses from the drop in Jinling Hotel's long position.| Loctek Ergonomic vs. Shenzhen AV Display Co | Loctek Ergonomic vs. Zhongshan Public Utilities | Loctek Ergonomic vs. Bank of Communications | Loctek Ergonomic vs. Beijing Bewinner Communications |
| Jinling Hotel vs. Guangxi Wuzhou Communications | Jinling Hotel vs. HeNan Splendor Science | Jinling Hotel vs. Tonghua Grape Wine | Jinling Hotel vs. Gansu Huangtai Wine marketing |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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