Correlation Between Loctek Ergonomic and Cabio Biotech
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Cabio Biotech Wuhan, you can compare the effects of market volatilities on Loctek Ergonomic and Cabio Biotech 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 Cabio Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Cabio Biotech.
Diversification Opportunities for Loctek Ergonomic and Cabio Biotech
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Loctek and Cabio is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Cabio Biotech Wuhan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cabio Biotech Wuhan 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 Cabio Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cabio Biotech Wuhan has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Cabio Biotech go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Cabio Biotech
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to generate 0.9 times more return on investment than Cabio Biotech. However, Loctek Ergonomic Technology is 1.11 times less risky than Cabio Biotech. It trades about 0.03 of its potential returns per unit of risk. Cabio Biotech Wuhan is currently generating about -0.03 per unit of risk. If you would invest 1,229 in Loctek Ergonomic Technology on October 11, 2024 and sell it today you would earn a total of 316.00 from holding Loctek Ergonomic Technology or generate 25.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loctek Ergonomic Technology vs. Cabio Biotech Wuhan
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Cabio Biotech Wuhan |
Loctek Ergonomic and Cabio Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Cabio Biotech
The main advantage of trading using opposite Loctek Ergonomic and Cabio Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Cabio Biotech 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 Cabio Biotech will offset losses from the drop in Cabio Biotech's long position.| Loctek Ergonomic vs. Anhui Gujing Distillery | Loctek Ergonomic vs. Southern PublishingMedia Co | Loctek Ergonomic vs. Shuhua Sports Co | Loctek Ergonomic vs. Guangzhou Jinyi Media |
| Cabio Biotech vs. Ping An Insurance | Cabio Biotech vs. Maoming Petro Chemical Shihua | Cabio Biotech vs. Guilin Seamild Foods | Cabio Biotech vs. Dymatic Chemicals |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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