Correlation Between Loctek Ergonomic and Jiangxi JDL
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Jiangxi JDL Environmental, you can compare the effects of market volatilities on Loctek Ergonomic and Jiangxi JDL 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 Jiangxi JDL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Jiangxi JDL.
Diversification Opportunities for Loctek Ergonomic and Jiangxi JDL
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Loctek and Jiangxi is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Jiangxi JDL Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi JDL Environmental 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 Jiangxi JDL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi JDL Environmental has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Jiangxi JDL go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Jiangxi JDL
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to generate 1.46 times more return on investment than Jiangxi JDL. However, Loctek Ergonomic is 1.46 times more volatile than Jiangxi JDL Environmental. It trades about -0.24 of its potential returns per unit of risk. Jiangxi JDL Environmental is currently generating about -0.44 per unit of risk. If you would invest 1,671 in Loctek Ergonomic Technology on October 16, 2024 and sell it today you would lose (180.00) from holding Loctek Ergonomic Technology or give up 10.77% 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. Jiangxi JDL Environmental
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Jiangxi JDL Environmental |
Loctek Ergonomic and Jiangxi JDL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Jiangxi JDL
The main advantage of trading using opposite Loctek Ergonomic and Jiangxi JDL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Jiangxi JDL 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 Jiangxi JDL will offset losses from the drop in Jiangxi JDL's long position.| Loctek Ergonomic vs. Chahua Modern Housewares | Loctek Ergonomic vs. Kuang Chi Technologies | Loctek Ergonomic vs. Fiberhome Telecommunication Technologies | Loctek Ergonomic vs. Sichuan Jinshi Technology |
| Jiangxi JDL vs. Ye Chiu Metal | Jiangxi JDL vs. JCHX Mining Management | Jiangxi JDL vs. Ningbo Jintian Copper | Jiangxi JDL vs. Western Metal Materials |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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