Correlation Between Loctek Ergonomic and Biwin Storage
Specify exactly 2 symbols:
By analyzing existing cross correlation between Loctek Ergonomic Technology and Biwin Storage Technology, you can compare the effects of market volatilities on Loctek Ergonomic and Biwin Storage 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 Biwin Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Biwin Storage.
Diversification Opportunities for Loctek Ergonomic and Biwin Storage
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Loctek and Biwin is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Biwin Storage Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biwin Storage 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 Biwin Storage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biwin Storage Technology has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Biwin Storage go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Biwin Storage
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to under-perform the Biwin Storage. But the stock apears to be less risky and, when comparing its historical volatility, Loctek Ergonomic Technology is 1.81 times less risky than Biwin Storage. The stock trades about -0.12 of its potential returns per unit of risk. The Biwin Storage Technology is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 5,934 in Biwin Storage Technology on October 18, 2024 and sell it today you would lose (49.00) from holding Biwin Storage Technology or give up 0.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loctek Ergonomic Technology vs. Biwin Storage Technology
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Biwin Storage Technology |
Loctek Ergonomic and Biwin Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Biwin Storage
The main advantage of trading using opposite Loctek Ergonomic and Biwin Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Biwin Storage 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 Biwin Storage will offset losses from the drop in Biwin Storage's long position.| Loctek Ergonomic vs. Beijing Bewinner Communications | Loctek Ergonomic vs. Cicc Fund Management | Loctek Ergonomic vs. AVIC Fund Management | Loctek Ergonomic vs. Eastern Communications Co |
| Biwin Storage vs. Hefei Metalforming Mach | Biwin Storage vs. North Copper Shanxi | Biwin Storage vs. Gem Year Industrial Co | Biwin Storage vs. Hainan Mining Co |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |