Correlation Between Loctek Ergonomic and Qijing Machinery
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Qijing Machinery, you can compare the effects of market volatilities on Loctek Ergonomic and Qijing Machinery 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 Qijing Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Qijing Machinery.
Diversification Opportunities for Loctek Ergonomic and Qijing Machinery
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Loctek and Qijing is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Qijing Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qijing Machinery 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 Qijing Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qijing Machinery has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Qijing Machinery go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Qijing Machinery
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to generate 0.75 times more return on investment than Qijing Machinery. However, Loctek Ergonomic Technology is 1.33 times less risky than Qijing Machinery. It trades about 0.2 of its potential returns per unit of risk. Qijing Machinery is currently generating about -0.11 per unit of risk. If you would invest 1,638 in Loctek Ergonomic Technology on August 29, 2024 and sell it today you would earn a total of 170.00 from holding Loctek Ergonomic Technology or generate 10.38% 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. Qijing Machinery
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Qijing Machinery |
Loctek Ergonomic and Qijing Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Qijing Machinery
The main advantage of trading using opposite Loctek Ergonomic and Qijing Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Qijing Machinery 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 Qijing Machinery will offset losses from the drop in Qijing Machinery's long position.| Loctek Ergonomic vs. Everjoy Health Group | Loctek Ergonomic vs. PKU HealthCare Corp | Loctek Ergonomic vs. Meinian Onehealth Healthcare | Loctek Ergonomic vs. Anhui Deli Household |
| Qijing Machinery vs. Zhejiang Kingland Pipeline | Qijing Machinery vs. XinJiang GuoTong Pipeline | Qijing Machinery vs. Kunwu Jiuding Investment | Qijing Machinery vs. Cultural Investment Holdings |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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