Correlation Between Loctek Ergonomic and Xiangpiaopiao Food
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Xiangpiaopiao Food Co, you can compare the effects of market volatilities on Loctek Ergonomic and Xiangpiaopiao Food 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 Xiangpiaopiao Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Xiangpiaopiao Food.
Diversification Opportunities for Loctek Ergonomic and Xiangpiaopiao Food
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Loctek and Xiangpiaopiao is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Xiangpiaopiao Food Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiangpiaopiao Food 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 Xiangpiaopiao Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiangpiaopiao Food has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Xiangpiaopiao Food go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Xiangpiaopiao Food
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to under-perform the Xiangpiaopiao Food. But the stock apears to be less risky and, when comparing its historical volatility, Loctek Ergonomic Technology is 2.12 times less risky than Xiangpiaopiao Food. The stock trades about -0.03 of its potential returns per unit of risk. The Xiangpiaopiao Food Co is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,523 in Xiangpiaopiao Food Co on October 18, 2024 and sell it today you would earn a total of 89.00 from holding Xiangpiaopiao Food Co or generate 5.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loctek Ergonomic Technology vs. Xiangpiaopiao Food Co
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Xiangpiaopiao Food |
Loctek Ergonomic and Xiangpiaopiao Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Xiangpiaopiao Food
The main advantage of trading using opposite Loctek Ergonomic and Xiangpiaopiao Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Xiangpiaopiao Food 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 Xiangpiaopiao Food will offset losses from the drop in Xiangpiaopiao Food's long position.| Loctek Ergonomic vs. Heilongjiang Publishing Media | Loctek Ergonomic vs. Guangdong Liantai Environmental | Loctek Ergonomic vs. Chengdu B ray Media | Loctek Ergonomic vs. City Development Environment |
| Xiangpiaopiao Food vs. Gan Yuan Foods | Xiangpiaopiao Food vs. Muyuan Foodstuff Co | Xiangpiaopiao Food vs. Chengdu Spaceon Electronics | Xiangpiaopiao Food vs. CSSC Offshore Marine |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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