Correlation Between Loctek Ergonomic and Hainan Haiqi
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Hainan Haiqi Transportation, you can compare the effects of market volatilities on Loctek Ergonomic and Hainan Haiqi 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 Hainan Haiqi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Hainan Haiqi.
Diversification Opportunities for Loctek Ergonomic and Hainan Haiqi
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Loctek and Hainan is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Hainan Haiqi Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Haiqi Transpo 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 Hainan Haiqi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Haiqi Transpo has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Hainan Haiqi go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Hainan Haiqi
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to generate 1.02 times more return on investment than Hainan Haiqi. However, Loctek Ergonomic is 1.02 times more volatile than Hainan Haiqi Transportation. It trades about 0.04 of its potential returns per unit of risk. Hainan Haiqi Transportation is currently generating about -0.01 per unit of risk. If you would invest 1,214 in Loctek Ergonomic Technology on September 14, 2024 and sell it today you would earn a total of 552.00 from holding Loctek Ergonomic Technology or generate 45.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loctek Ergonomic Technology vs. Hainan Haiqi Transportation
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Hainan Haiqi Transpo |
Loctek Ergonomic and Hainan Haiqi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Hainan Haiqi
The main advantage of trading using opposite Loctek Ergonomic and Hainan Haiqi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Hainan Haiqi 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 Hainan Haiqi will offset losses from the drop in Hainan Haiqi's long position.| Loctek Ergonomic vs. Sinosteel Engineering and | Loctek Ergonomic vs. Bengang Steel Plates | Loctek Ergonomic vs. Central Plains Environment | Loctek Ergonomic vs. Guangzhou Dongfang Hotel |
| Hainan Haiqi vs. Ming Yang Smart | Hainan Haiqi vs. 159681 | Hainan Haiqi vs. 159005 | Hainan Haiqi 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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