Correlation Between Loctek Ergonomic and Cansino Biologics
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Cansino Biologics, you can compare the effects of market volatilities on Loctek Ergonomic and Cansino Biologics 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 Cansino Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Cansino Biologics.
Diversification Opportunities for Loctek Ergonomic and Cansino Biologics
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Loctek and Cansino is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Cansino Biologics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cansino Biologics 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 Cansino Biologics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cansino Biologics has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Cansino Biologics go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Cansino Biologics
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to under-perform the Cansino Biologics. But the stock apears to be less risky and, when comparing its historical volatility, Loctek Ergonomic Technology is 1.6 times less risky than Cansino Biologics. The stock trades about -0.03 of its potential returns per unit of risk. The Cansino Biologics is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 5,913 in Cansino Biologics on November 6, 2024 and sell it today you would lose (111.00) from holding Cansino Biologics or give up 1.88% 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. Cansino Biologics
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Cansino Biologics |
Loctek Ergonomic and Cansino Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Cansino Biologics
The main advantage of trading using opposite Loctek Ergonomic and Cansino Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Cansino Biologics 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 Cansino Biologics will offset losses from the drop in Cansino Biologics' long position.| Loctek Ergonomic vs. Integrated Electronic Systems | Loctek Ergonomic vs. Dongnan Electronics Co | Loctek Ergonomic vs. Epoxy Base Electronic | Loctek Ergonomic vs. Beijing Kingsoft Office |
| Cansino Biologics vs. Lander Sports Development | Cansino Biologics vs. GUOMAI Culture Media | Cansino Biologics vs. Shandong Publishing Media | Cansino Biologics vs. Changjiang Publishing Media |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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