Correlation Between Loctek Ergonomic and Beijing Shanghai
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Beijing Shanghai High Speed, you can compare the effects of market volatilities on Loctek Ergonomic and Beijing Shanghai 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 Beijing Shanghai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Beijing Shanghai.
Diversification Opportunities for Loctek Ergonomic and Beijing Shanghai
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Loctek and Beijing is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Beijing Shanghai High Speed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Shanghai High 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 Beijing Shanghai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Shanghai High has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Beijing Shanghai go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Beijing Shanghai
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to generate 2.21 times more return on investment than Beijing Shanghai. However, Loctek Ergonomic is 2.21 times more volatile than Beijing Shanghai High Speed. It trades about 0.04 of its potential returns per unit of risk. Beijing Shanghai High Speed is currently generating about 0.05 per unit of risk. If you would invest 1,199 in Loctek Ergonomic Technology on September 13, 2024 and sell it today you would earn a total of 515.00 from holding Loctek Ergonomic Technology or generate 42.95% 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. Beijing Shanghai High Speed
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Beijing Shanghai High |
Loctek Ergonomic and Beijing Shanghai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Beijing Shanghai
The main advantage of trading using opposite Loctek Ergonomic and Beijing Shanghai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Beijing Shanghai 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 Beijing Shanghai will offset losses from the drop in Beijing Shanghai's long position.| Loctek Ergonomic vs. Yuan Longping High tech | Loctek Ergonomic vs. Jinhe Biotechnology Co | Loctek Ergonomic vs. Bus Online Co | Loctek Ergonomic vs. Haima Automobile Group |
| Beijing Shanghai vs. Ming Yang Smart | Beijing Shanghai vs. 159681 | Beijing Shanghai vs. 159005 | Beijing Shanghai 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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