Correlation Between Loctek Ergonomic and Inly Media
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Inly Media Co, you can compare the effects of market volatilities on Loctek Ergonomic and Inly Media 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 Inly Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Inly Media.
Diversification Opportunities for Loctek Ergonomic and Inly Media
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Loctek and Inly is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Inly Media Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inly Media 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 Inly Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inly Media has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Inly Media go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Inly Media
Assuming the 90 days trading horizon Loctek Ergonomic is expected to generate 2.47 times less return on investment than Inly Media. But when comparing it to its historical volatility, Loctek Ergonomic Technology is 2.43 times less risky than Inly Media. It trades about 0.02 of its potential returns per unit of risk. Inly Media Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,809 in Inly Media Co on November 30, 2024 and sell it today you would lose (11.00) from holding Inly Media Co or give up 0.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loctek Ergonomic Technology vs. Inly Media Co
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Inly Media |
Loctek Ergonomic and Inly Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Inly Media
The main advantage of trading using opposite Loctek Ergonomic and Inly Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Inly Media 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 Inly Media will offset losses from the drop in Inly Media's long position.| Loctek Ergonomic vs. YiDong Electronics Technology | Loctek Ergonomic vs. Kunshan Guoli Electronic | Loctek Ergonomic vs. Zhejiang Construction Investment | Loctek Ergonomic vs. Chengdu Xingrong Investment |
| Inly Media vs. Jiangsu Financial Leasing | Inly Media vs. Jinhui Liquor Co | Inly Media vs. China Satellite Communications | Inly Media vs. Xiamen Bank Co |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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