Correlation Between Loctek Ergonomic and Piotech
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Piotech Inc A, you can compare the effects of market volatilities on Loctek Ergonomic and Piotech 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 Piotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Piotech.
Diversification Opportunities for Loctek Ergonomic and Piotech
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Loctek and Piotech is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Piotech Inc A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Piotech Inc A 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 Piotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Piotech Inc A has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Piotech go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Piotech
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to generate 1.14 times more return on investment than Piotech. However, Loctek Ergonomic is 1.14 times more volatile than Piotech Inc A. It trades about -0.28 of its potential returns per unit of risk. Piotech Inc A is currently generating about -0.33 per unit of risk. If you would invest 1,808 in Loctek Ergonomic Technology on September 27, 2024 and sell it today you would lose (245.00) from holding Loctek Ergonomic Technology or give up 13.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loctek Ergonomic Technology vs. Piotech Inc A
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Piotech Inc A |
Loctek Ergonomic and Piotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Piotech
The main advantage of trading using opposite Loctek Ergonomic and Piotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Piotech 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 Piotech will offset losses from the drop in Piotech's long position.| Loctek Ergonomic vs. Heilongjiang Publishing Media | Loctek Ergonomic vs. Quectel Wireless Solutions | Loctek Ergonomic vs. Hengdian Entertainment Co | Loctek Ergonomic vs. Dook Media Group |
| Piotech vs. Ming Yang Smart | Piotech vs. 159681 | Piotech vs. 159005 | Piotech 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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