Correlation Between Loctek Ergonomic and Industrial Bank
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Industrial Bank Co, you can compare the effects of market volatilities on Loctek Ergonomic and Industrial Bank 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 Industrial Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Industrial Bank.
Diversification Opportunities for Loctek Ergonomic and Industrial Bank
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Loctek and Industrial is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Industrial Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial Bank 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 Industrial Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial Bank has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Industrial Bank go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Industrial Bank
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to generate 1.49 times more return on investment than Industrial Bank. However, Loctek Ergonomic is 1.49 times more volatile than Industrial Bank Co. It trades about 0.26 of its potential returns per unit of risk. Industrial Bank Co is currently generating about 0.3 per unit of risk. If you would invest 1,533 in Loctek Ergonomic Technology on November 18, 2024 and sell it today you would earn a total of 125.00 from holding Loctek Ergonomic Technology or generate 8.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loctek Ergonomic Technology vs. Industrial Bank Co
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Industrial Bank |
Loctek Ergonomic and Industrial Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Industrial Bank
The main advantage of trading using opposite Loctek Ergonomic and Industrial Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Industrial Bank 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 Industrial Bank will offset losses from the drop in Industrial Bank's long position.| Loctek Ergonomic vs. Montage Technology Co | Loctek Ergonomic vs. Keeson Technology Corp | Loctek Ergonomic vs. Jiangsu Xinri E Vehicle | Loctek Ergonomic vs. Guangzhou Automobile Group |
| Industrial Bank vs. Zhangjiagang Freetrade Science | Industrial Bank vs. GKHT Medical Technology | Industrial Bank vs. Chison Medical Technologies | Industrial Bank vs. Ningxia Younglight Chemicals |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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