Correlation Between Loctek Ergonomic and GreenTech Environmental
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By analyzing existing cross correlation between Loctek Ergonomic Technology and GreenTech Environmental Co, you can compare the effects of market volatilities on Loctek Ergonomic and GreenTech Environmental 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 GreenTech Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and GreenTech Environmental.
Diversification Opportunities for Loctek Ergonomic and GreenTech Environmental
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Loctek and GreenTech is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and GreenTech Environmental Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenTech 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 GreenTech Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GreenTech Environmental has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and GreenTech Environmental go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and GreenTech Environmental
Assuming the 90 days trading horizon Loctek Ergonomic is expected to generate 1.13 times less return on investment than GreenTech Environmental. In addition to that, Loctek Ergonomic is 1.2 times more volatile than GreenTech Environmental Co. It trades about 0.11 of its total potential returns per unit of risk. GreenTech Environmental Co is currently generating about 0.15 per unit of volatility. If you would invest 1,325 in GreenTech Environmental Co on November 4, 2024 and sell it today you would earn a total of 60.00 from holding GreenTech Environmental Co or generate 4.53% 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. GreenTech Environmental Co
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| GreenTech Environmental |
Loctek Ergonomic and GreenTech Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and GreenTech Environmental
The main advantage of trading using opposite Loctek Ergonomic and GreenTech Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, GreenTech Environmental 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 GreenTech Environmental will offset losses from the drop in GreenTech Environmental's long position.| Loctek Ergonomic vs. Dr Peng Telecom | Loctek Ergonomic vs. Shenyang Chemical Industry | Loctek Ergonomic vs. Tianjin Hi Tech Development | Loctek Ergonomic vs. Liuzhou Chemical Industry |
| GreenTech Environmental vs. Keeson Technology Corp | GreenTech Environmental vs. UCloud Technology Co | GreenTech Environmental vs. Qingdao Haier Biomedical | GreenTech Environmental vs. Sino Medical Sciences |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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