Correlation Between Loctek Ergonomic and Liaoning Chengda
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Liaoning Chengda Biotechnology, you can compare the effects of market volatilities on Loctek Ergonomic and Liaoning Chengda 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 Liaoning Chengda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Liaoning Chengda.
Diversification Opportunities for Loctek Ergonomic and Liaoning Chengda
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Loctek and Liaoning is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Liaoning Chengda Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liaoning Chengda Bio 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 Liaoning Chengda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liaoning Chengda Bio has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Liaoning Chengda go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Liaoning Chengda
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to under-perform the Liaoning Chengda. In addition to that, Loctek Ergonomic is 1.73 times more volatile than Liaoning Chengda Biotechnology. It trades about -0.17 of its total potential returns per unit of risk. Liaoning Chengda Biotechnology is currently generating about -0.28 per unit of volatility. If you would invest 2,645 in Liaoning Chengda Biotechnology on October 25, 2024 and sell it today you would lose (170.00) from holding Liaoning Chengda Biotechnology or give up 6.43% 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. Liaoning Chengda Biotechnology
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Liaoning Chengda Bio |
Loctek Ergonomic and Liaoning Chengda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Liaoning Chengda
The main advantage of trading using opposite Loctek Ergonomic and Liaoning Chengda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Liaoning Chengda 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 Liaoning Chengda will offset losses from the drop in Liaoning Chengda's long position.| Loctek Ergonomic vs. Shanghai Rongtai Health | Loctek Ergonomic vs. Humanwell Healthcare Group | Loctek Ergonomic vs. Yunnan Jianzhijia Health Chain | Loctek Ergonomic vs. Impulse Qingdao Health |
| Liaoning Chengda vs. Agricultural Bank of | Liaoning Chengda vs. Industrial and Commercial | Liaoning Chengda vs. Bank of China | Liaoning Chengda vs. China Construction Bank |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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