Correlation Between Loctek Ergonomic and Shuhua Sports
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Shuhua Sports Co, you can compare the effects of market volatilities on Loctek Ergonomic and Shuhua Sports 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 Shuhua Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Shuhua Sports.
Diversification Opportunities for Loctek Ergonomic and Shuhua Sports
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Loctek and Shuhua is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Shuhua Sports Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shuhua Sports 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 Shuhua Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shuhua Sports has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Shuhua Sports go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Shuhua Sports
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to generate 0.72 times more return on investment than Shuhua Sports. However, Loctek Ergonomic Technology is 1.39 times less risky than Shuhua Sports. It trades about 0.11 of its potential returns per unit of risk. Shuhua Sports Co is currently generating about -0.06 per unit of risk. If you would invest 1,505 in Loctek Ergonomic Technology on November 5, 2024 and sell it today you would earn a total of 57.00 from holding Loctek Ergonomic Technology or generate 3.79% 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. Shuhua Sports Co
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Shuhua Sports |
Loctek Ergonomic and Shuhua Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Shuhua Sports
The main advantage of trading using opposite Loctek Ergonomic and Shuhua Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Shuhua Sports 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 Shuhua Sports will offset losses from the drop in Shuhua Sports' long position.| Loctek Ergonomic vs. Beingmate Baby Child | Loctek Ergonomic vs. Huatian Hotel Group | Loctek Ergonomic vs. Fujian Wanchen Biotechnology | Loctek Ergonomic vs. China National Software |
| Shuhua Sports vs. Ningbo Fangzheng Automobile | Shuhua Sports vs. Shenzhen Cotran New | Shuhua Sports vs. Ningbo Tip Rubber | Shuhua Sports vs. Super Dragon Engineering Plastics |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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