Correlation Between Loctek Ergonomic and HOB Biotech
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By analyzing existing cross correlation between Loctek Ergonomic Technology and HOB Biotech Group, you can compare the effects of market volatilities on Loctek Ergonomic and HOB Biotech 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 HOB Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and HOB Biotech.
Diversification Opportunities for Loctek Ergonomic and HOB Biotech
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Loctek and HOB is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and HOB Biotech Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HOB Biotech Group 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 HOB Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HOB Biotech Group has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and HOB Biotech go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and HOB Biotech
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to generate 0.39 times more return on investment than HOB Biotech. However, Loctek Ergonomic Technology is 2.56 times less risky than HOB Biotech. It trades about 0.0 of its potential returns per unit of risk. HOB Biotech Group is currently generating about -0.17 per unit of risk. If you would invest 1,608 in Loctek Ergonomic Technology on September 19, 2024 and sell it today you would lose (12.00) from holding Loctek Ergonomic Technology or give up 0.75% 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. HOB Biotech Group
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| HOB Biotech Group |
Loctek Ergonomic and HOB Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and HOB Biotech
The main advantage of trading using opposite Loctek Ergonomic and HOB Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, HOB Biotech 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 HOB Biotech will offset losses from the drop in HOB Biotech's long position.| Loctek Ergonomic vs. Luyin Investment Group | Loctek Ergonomic vs. Jointo Energy Investment | Loctek Ergonomic vs. Xiandai Investment Co | Loctek Ergonomic vs. Guangdong Shenglu Telecommunication |
| HOB Biotech vs. Industrial and Commercial | HOB Biotech vs. Kweichow Moutai Co | HOB Biotech vs. Agricultural Bank of | HOB Biotech vs. China Mobile Limited |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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