Correlation Between Loctek Ergonomic and Suzhou Mingzhi
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Suzhou Mingzhi Technology, you can compare the effects of market volatilities on Loctek Ergonomic and Suzhou Mingzhi 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 Suzhou Mingzhi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Suzhou Mingzhi.
Diversification Opportunities for Loctek Ergonomic and Suzhou Mingzhi
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Loctek and Suzhou is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Suzhou Mingzhi Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Mingzhi Technology 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 Suzhou Mingzhi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Mingzhi Technology has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Suzhou Mingzhi go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Suzhou Mingzhi
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to generate 0.95 times more return on investment than Suzhou Mingzhi. However, Loctek Ergonomic Technology is 1.05 times less risky than Suzhou Mingzhi. It trades about 0.03 of its potential returns per unit of risk. Suzhou Mingzhi Technology is currently generating about -0.01 per unit of risk. If you would invest 1,244 in Loctek Ergonomic Technology on December 4, 2024 and sell it today you would earn a total of 358.00 from holding Loctek Ergonomic Technology or generate 28.78% 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. Suzhou Mingzhi Technology
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Suzhou Mingzhi Technology |
Loctek Ergonomic and Suzhou Mingzhi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Suzhou Mingzhi
The main advantage of trading using opposite Loctek Ergonomic and Suzhou Mingzhi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Suzhou Mingzhi 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 Suzhou Mingzhi will offset losses from the drop in Suzhou Mingzhi's long position.| Loctek Ergonomic vs. Shenzhen AV Display Co | Loctek Ergonomic vs. Zhongshan Public Utilities | Loctek Ergonomic vs. Bank of Communications | Loctek Ergonomic vs. Beijing Bewinner Communications |
| Suzhou Mingzhi vs. GRG Banking Equipment | Suzhou Mingzhi vs. Nancal Energy Saving Tech | Suzhou Mingzhi vs. Ningbo Tech Bank Co | Suzhou Mingzhi vs. Dazhong Transportation Group |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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