Correlation Between Loctek Ergonomic and Zhende Medical
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Zhende Medical Co, you can compare the effects of market volatilities on Loctek Ergonomic and Zhende Medical 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 Zhende Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Zhende Medical.
Diversification Opportunities for Loctek Ergonomic and Zhende Medical
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Loctek and Zhende is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Zhende Medical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhende Medical 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 Zhende Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhende Medical has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Zhende Medical go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Zhende Medical
Assuming the 90 days trading horizon Loctek Ergonomic is expected to generate 1.11 times less return on investment than Zhende Medical. In addition to that, Loctek Ergonomic is 1.92 times more volatile than Zhende Medical Co. It trades about 0.06 of its total potential returns per unit of risk. Zhende Medical Co is currently generating about 0.13 per unit of volatility. If you would invest 2,133 in Zhende Medical Co on November 3, 2024 and sell it today you would earn a total of 57.00 from holding Zhende Medical Co or generate 2.67% 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. Zhende Medical Co
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Zhende Medical |
Loctek Ergonomic and Zhende Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Zhende Medical
The main advantage of trading using opposite Loctek Ergonomic and Zhende Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Zhende Medical 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 Zhende Medical will offset losses from the drop in Zhende Medical's long position.| Loctek Ergonomic vs. Youyou Foods Co | Loctek Ergonomic vs. Senci Electric Machinery | Loctek Ergonomic vs. V V Food | Loctek Ergonomic vs. Yankershop Food Co |
| Zhende Medical vs. Sichuan Yahua Industrial | Zhende Medical vs. Chengtun Mining Group | Zhende Medical vs. Gifore Agricultural Machinery | Zhende Medical vs. Hengli Industrial Development |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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