Correlation Between Loctek Ergonomic and Jiangsu Seagull
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Jiangsu Seagull Cooling, you can compare the effects of market volatilities on Loctek Ergonomic and Jiangsu Seagull 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 Jiangsu Seagull. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Jiangsu Seagull.
Diversification Opportunities for Loctek Ergonomic and Jiangsu Seagull
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Loctek and Jiangsu is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Jiangsu Seagull Cooling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Seagull Cooling 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 Jiangsu Seagull. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Seagull Cooling has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Jiangsu Seagull go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Jiangsu Seagull
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to generate 0.84 times more return on investment than Jiangsu Seagull. However, Loctek Ergonomic Technology is 1.19 times less risky than Jiangsu Seagull. It trades about 0.03 of its potential returns per unit of risk. Jiangsu Seagull Cooling is currently generating about 0.02 per unit of risk. If you would invest 1,298 in Loctek Ergonomic Technology on August 24, 2024 and sell it today you would earn a total of 372.00 from holding Loctek Ergonomic Technology or generate 28.66% 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. Jiangsu Seagull Cooling
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Jiangsu Seagull Cooling |
Loctek Ergonomic and Jiangsu Seagull Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Jiangsu Seagull
The main advantage of trading using opposite Loctek Ergonomic and Jiangsu Seagull positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Jiangsu Seagull 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 Jiangsu Seagull will offset losses from the drop in Jiangsu Seagull's long position.| Loctek Ergonomic vs. Success Electronics | Loctek Ergonomic vs. Puyang Huicheng Electronic | Loctek Ergonomic vs. Integrated Electronic Systems | Loctek Ergonomic vs. Hangzhou Weiguang Electronic |
| Jiangsu Seagull vs. CSSC Offshore Marine | Jiangsu Seagull vs. Suzhou Weizhixiang Food | Jiangsu Seagull vs. Yankershop Food Co | Jiangsu Seagull vs. Xinjiang Baodi Mining |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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