Correlation Between Loctek Ergonomic and Suzhou Weizhixiang
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Suzhou Weizhixiang Food, you can compare the effects of market volatilities on Loctek Ergonomic and Suzhou Weizhixiang 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 Suzhou Weizhixiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Suzhou Weizhixiang.
Diversification Opportunities for Loctek Ergonomic and Suzhou Weizhixiang
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Loctek and Suzhou is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Suzhou Weizhixiang Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Weizhixiang 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 Suzhou Weizhixiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Weizhixiang Food has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Suzhou Weizhixiang go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Suzhou Weizhixiang
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to under-perform the Suzhou Weizhixiang. But the stock apears to be less risky and, when comparing its historical volatility, Loctek Ergonomic Technology is 2.12 times less risky than Suzhou Weizhixiang. The stock trades about -0.22 of its potential returns per unit of risk. The Suzhou Weizhixiang Food is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 2,355 in Suzhou Weizhixiang Food on September 28, 2024 and sell it today you would earn a total of 269.00 from holding Suzhou Weizhixiang Food or generate 11.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loctek Ergonomic Technology vs. Suzhou Weizhixiang Food
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Suzhou Weizhixiang Food |
Loctek Ergonomic and Suzhou Weizhixiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Suzhou Weizhixiang
The main advantage of trading using opposite Loctek Ergonomic and Suzhou Weizhixiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Suzhou Weizhixiang 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 Suzhou Weizhixiang will offset losses from the drop in Suzhou Weizhixiang's long position.| Loctek Ergonomic vs. AVCON Information Tech | Loctek Ergonomic vs. ZJBC Information Technology | Loctek Ergonomic vs. Pengxin International Mining | Loctek Ergonomic vs. Longmaster Information Tech |
| Suzhou Weizhixiang vs. Ming Yang Smart | Suzhou Weizhixiang vs. 159681 | Suzhou Weizhixiang vs. 159005 | Suzhou Weizhixiang 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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