Correlation Between Loctek Ergonomic and Semiconductor Manufacturing
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Semiconductor Manufacturing Electronics, you can compare the effects of market volatilities on Loctek Ergonomic and Semiconductor Manufacturing 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 Semiconductor Manufacturing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Semiconductor Manufacturing.
Diversification Opportunities for Loctek Ergonomic and Semiconductor Manufacturing
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Loctek and Semiconductor is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Semiconductor Manufacturing El in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Semiconductor Manufacturing 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 Semiconductor Manufacturing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Semiconductor Manufacturing has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Semiconductor Manufacturing go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Semiconductor Manufacturing
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to under-perform the Semiconductor Manufacturing. In addition to that, Loctek Ergonomic is 1.12 times more volatile than Semiconductor Manufacturing Electronics. It trades about -0.22 of its total potential returns per unit of risk. Semiconductor Manufacturing Electronics is currently generating about -0.1 per unit of volatility. If you would invest 552.00 in Semiconductor Manufacturing Electronics on September 28, 2024 and sell it today you would lose (27.00) from holding Semiconductor Manufacturing Electronics or give up 4.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loctek Ergonomic Technology vs. Semiconductor Manufacturing El
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Semiconductor Manufacturing |
Loctek Ergonomic and Semiconductor Manufacturing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Semiconductor Manufacturing
The main advantage of trading using opposite Loctek Ergonomic and Semiconductor Manufacturing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Semiconductor Manufacturing 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 Semiconductor Manufacturing will offset losses from the drop in Semiconductor Manufacturing's long position.| Loctek Ergonomic vs. AVCON Information Tech | Loctek Ergonomic vs. ZJBC Information Technology | Loctek Ergonomic vs. Pengxin International Mining | Loctek Ergonomic vs. Longmaster Information Tech |
| Semiconductor Manufacturing vs. Ming Yang Smart | Semiconductor Manufacturing vs. 159681 | Semiconductor Manufacturing vs. 159005 | Semiconductor Manufacturing 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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