Correlation Between Loctek Ergonomic and Zhongyin Babi
Specify exactly 2 symbols:
By analyzing existing cross correlation between Loctek Ergonomic Technology and Zhongyin Babi Food, you can compare the effects of market volatilities on Loctek Ergonomic and Zhongyin Babi 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 Zhongyin Babi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Zhongyin Babi.
Diversification Opportunities for Loctek Ergonomic and Zhongyin Babi
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Loctek and Zhongyin is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Zhongyin Babi Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongyin Babi 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 Zhongyin Babi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongyin Babi Food has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Zhongyin Babi go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Zhongyin Babi
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to generate 1.31 times more return on investment than Zhongyin Babi. However, Loctek Ergonomic is 1.31 times more volatile than Zhongyin Babi Food. It trades about 0.03 of its potential returns per unit of risk. Zhongyin Babi Food is currently generating about -0.04 per unit of risk. If you would invest 1,213 in Loctek Ergonomic Technology on September 28, 2024 and sell it today you would earn a total of 377.00 from holding Loctek Ergonomic Technology or generate 31.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Loctek Ergonomic Technology vs. Zhongyin Babi Food
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Zhongyin Babi Food |
Loctek Ergonomic and Zhongyin Babi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Zhongyin Babi
The main advantage of trading using opposite Loctek Ergonomic and Zhongyin Babi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Zhongyin Babi 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 Zhongyin Babi will offset losses from the drop in Zhongyin Babi'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 |
| Zhongyin Babi vs. Ming Yang Smart | Zhongyin Babi vs. 159681 | Zhongyin Babi vs. 159005 | Zhongyin Babi 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |