Correlation Between Loctek Ergonomic and Jiangsu Xinri
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Jiangsu Xinri E Vehicle, you can compare the effects of market volatilities on Loctek Ergonomic and Jiangsu Xinri 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 Xinri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Jiangsu Xinri.
Diversification Opportunities for Loctek Ergonomic and Jiangsu Xinri
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Loctek and Jiangsu is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Jiangsu Xinri E Vehicle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Xinri E 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 Xinri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Xinri E has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Jiangsu Xinri go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Jiangsu Xinri
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to under-perform the Jiangsu Xinri. But the stock apears to be less risky and, when comparing its historical volatility, Loctek Ergonomic Technology is 1.07 times less risky than Jiangsu Xinri. The stock trades about -0.18 of its potential returns per unit of risk. The Jiangsu Xinri E Vehicle is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest 1,065 in Jiangsu Xinri E Vehicle on October 29, 2024 and sell it today you would lose (51.00) from holding Jiangsu Xinri E Vehicle or give up 4.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loctek Ergonomic Technology vs. Jiangsu Xinri E Vehicle
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Jiangsu Xinri E |
Loctek Ergonomic and Jiangsu Xinri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Jiangsu Xinri
The main advantage of trading using opposite Loctek Ergonomic and Jiangsu Xinri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Jiangsu Xinri 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 Xinri will offset losses from the drop in Jiangsu Xinri's long position.| Loctek Ergonomic vs. Shanghai Yaoji Playing | Loctek Ergonomic vs. Rising Nonferrous Metals | Loctek Ergonomic vs. Caihong Display Devices | Loctek Ergonomic vs. Lander Sports Development |
| Jiangsu Xinri vs. Hainan Mining Co | Jiangsu Xinri vs. 360 Security Technology | Jiangsu Xinri vs. ROPEOK Technology Group | Jiangsu Xinri vs. Cansino Biologics |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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