Correlation Between Loctek Ergonomic and Jinhui Liquor
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Jinhui Liquor Co, you can compare the effects of market volatilities on Loctek Ergonomic and Jinhui Liquor 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 Jinhui Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Jinhui Liquor.
Diversification Opportunities for Loctek Ergonomic and Jinhui Liquor
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Loctek and Jinhui is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Jinhui Liquor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhui Liquor 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 Jinhui Liquor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinhui Liquor has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Jinhui Liquor go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Jinhui Liquor
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to under-perform the Jinhui Liquor. In addition to that, Loctek Ergonomic is 1.33 times more volatile than Jinhui Liquor Co. It trades about -0.1 of its total potential returns per unit of risk. Jinhui Liquor Co is currently generating about -0.1 per unit of volatility. If you would invest 1,961 in Jinhui Liquor Co on October 24, 2024 and sell it today you would lose (61.00) from holding Jinhui Liquor Co or give up 3.11% 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. Jinhui Liquor Co
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Jinhui Liquor |
Loctek Ergonomic and Jinhui Liquor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Jinhui Liquor
The main advantage of trading using opposite Loctek Ergonomic and Jinhui Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Jinhui Liquor 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 Jinhui Liquor will offset losses from the drop in Jinhui Liquor's long position.| Loctek Ergonomic vs. Aba Chemicals Corp | Loctek Ergonomic vs. Shandong Polymer Biochemicals | Loctek Ergonomic vs. Zhejiang Kingland Pipeline | Loctek Ergonomic vs. Ningxia Younglight Chemicals |
| Jinhui Liquor vs. Ming Yang Smart | Jinhui Liquor vs. 159681 | Jinhui Liquor vs. 159005 | Jinhui Liquor 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 Stocks Directory module to find actively traded stocks across global markets.
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