Correlation Between Loctek Ergonomic and Bank of Communications
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Bank of Communications, you can compare the effects of market volatilities on Loctek Ergonomic and Bank of Communications 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 Bank of Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Bank of Communications.
Diversification Opportunities for Loctek Ergonomic and Bank of Communications
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Loctek and Bank is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Bank of Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Communications 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 Bank of Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Communications has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Bank of Communications go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Bank of Communications
Assuming the 90 days trading horizon Loctek Ergonomic is expected to generate 3.85 times less return on investment than Bank of Communications. In addition to that, Loctek Ergonomic is 2.14 times more volatile than Bank of Communications. It trades about 0.02 of its total potential returns per unit of risk. Bank of Communications is currently generating about 0.2 per unit of volatility. If you would invest 711.00 in Bank of Communications on September 12, 2024 and sell it today you would earn a total of 39.00 from holding Bank of Communications or generate 5.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loctek Ergonomic Technology vs. Bank of Communications
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Bank of Communications |
Loctek Ergonomic and Bank of Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Bank of Communications
The main advantage of trading using opposite Loctek Ergonomic and Bank of Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Bank of Communications 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 Bank of Communications will offset losses from the drop in Bank of Communications' long position.| Loctek Ergonomic vs. Uxi Unicomp Technology | Loctek Ergonomic vs. Maxvision Technology Corp | Loctek Ergonomic vs. Olympic Circuit Technology | Loctek Ergonomic vs. Shandong Sanyuan Biotechnology |
| Bank of Communications vs. China Petroleum Chemical | Bank of Communications vs. PetroChina Co Ltd | Bank of Communications vs. China Mobile Limited | Bank of Communications vs. Industrial and Commercial |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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