Correlation Between Loctek Ergonomic and Changchun Engley
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Changchun Engley Automobile, you can compare the effects of market volatilities on Loctek Ergonomic and Changchun Engley 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 Changchun Engley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Changchun Engley.
Diversification Opportunities for Loctek Ergonomic and Changchun Engley
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Loctek and Changchun is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Changchun Engley Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun Engley Aut 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 Changchun Engley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun Engley Aut has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Changchun Engley go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Changchun Engley
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to generate 0.71 times more return on investment than Changchun Engley. However, Loctek Ergonomic Technology is 1.4 times less risky than Changchun Engley. It trades about -0.17 of its potential returns per unit of risk. Changchun Engley Automobile is currently generating about -0.15 per unit of risk. If you would invest 1,584 in Loctek Ergonomic Technology on October 25, 2024 and sell it today you would lose (114.00) from holding Loctek Ergonomic Technology or give up 7.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loctek Ergonomic Technology vs. Changchun Engley Automobile
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Changchun Engley Aut |
Loctek Ergonomic and Changchun Engley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Changchun Engley
The main advantage of trading using opposite Loctek Ergonomic and Changchun Engley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Changchun Engley 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 Changchun Engley will offset losses from the drop in Changchun Engley's long position.| Loctek Ergonomic vs. Shanghai Rongtai Health | Loctek Ergonomic vs. Humanwell Healthcare Group | Loctek Ergonomic vs. Yunnan Jianzhijia Health Chain | Loctek Ergonomic vs. Impulse Qingdao Health |
| Changchun Engley vs. PetroChina Co Ltd | Changchun Engley vs. Gansu Jiu Steel | Changchun Engley vs. Ming Yang Smart | Changchun Engley vs. Aba Chemicals Corp |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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