Correlation Between Loctek Ergonomic and Shanghai Bailian
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Shanghai Bailian Group, you can compare the effects of market volatilities on Loctek Ergonomic and Shanghai Bailian 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 Shanghai Bailian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Shanghai Bailian.
Diversification Opportunities for Loctek Ergonomic and Shanghai Bailian
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Loctek and Shanghai is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Shanghai Bailian Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Bailian 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 Shanghai Bailian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Bailian has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Shanghai Bailian go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Shanghai Bailian
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to generate 1.59 times more return on investment than Shanghai Bailian. However, Loctek Ergonomic is 1.59 times more volatile than Shanghai Bailian Group. It trades about 0.03 of its potential returns per unit of risk. Shanghai Bailian Group is currently generating about 0.0 per unit of risk. If you would invest 1,261 in Loctek Ergonomic Technology on October 22, 2024 and sell it today you would earn a total of 272.00 from holding Loctek Ergonomic Technology or generate 21.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Loctek Ergonomic Technology vs. Shanghai Bailian Group
Performance |
| Timeline |
| Loctek Ergonomic Tec |
| Shanghai Bailian |
Loctek Ergonomic and Shanghai Bailian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loctek Ergonomic and Shanghai Bailian
The main advantage of trading using opposite Loctek Ergonomic and Shanghai Bailian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Shanghai Bailian 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 Shanghai Bailian will offset losses from the drop in Shanghai Bailian's long position.| Loctek Ergonomic vs. Tonghua Grape Wine | Loctek Ergonomic vs. Nexchip Semiconductor Corp | Loctek Ergonomic vs. Southchip Semiconductor Technology | Loctek Ergonomic vs. Will Semiconductor Co |
| Shanghai Bailian vs. Kuang Chi Technologies | Shanghai Bailian vs. Guangdong Qunxing Toys | Shanghai Bailian vs. Suzhou Douson Drilling | Shanghai Bailian vs. Tianjin Hi Tech Development |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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