Correlation Between Loctek Ergonomic and Jiangsu Pacific
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Jiangsu Pacific Quartz, you can compare the effects of market volatilities on Loctek Ergonomic and Jiangsu Pacific 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 Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Jiangsu Pacific.
Diversification Opportunities for Loctek Ergonomic and Jiangsu Pacific
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Loctek and Jiangsu is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Jiangsu Pacific Quartz in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Pacific Quartz 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 Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Pacific Quartz has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Jiangsu Pacific go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Jiangsu Pacific
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to generate 0.87 times more return on investment than Jiangsu Pacific. However, Loctek Ergonomic Technology is 1.15 times less risky than Jiangsu Pacific. It trades about 0.03 of its potential returns per unit of risk. Jiangsu Pacific Quartz is currently generating about -0.07 per unit of risk. If you would invest 1,222 in Loctek Ergonomic Technology on September 26, 2024 and sell it today you would earn a total of 362.00 from holding Loctek Ergonomic Technology or generate 29.62% 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. Jiangsu Pacific Quartz
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Jiangsu Pacific Quartz |
Loctek Ergonomic and Jiangsu Pacific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Jiangsu Pacific
The main advantage of trading using opposite Loctek Ergonomic and Jiangsu Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Jiangsu Pacific 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 Pacific will offset losses from the drop in Jiangsu Pacific's long position.| Loctek Ergonomic vs. Ming Yang Smart | Loctek Ergonomic vs. 159681 | Loctek Ergonomic vs. 159005 | Loctek Ergonomic vs. Yes Optoelectronics Co |
| Jiangsu Pacific vs. Ming Yang Smart | Jiangsu Pacific vs. 159681 | Jiangsu Pacific vs. 159005 | Jiangsu Pacific 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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