Correlation Between Dook Media and Loctek Ergonomic
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By analyzing existing cross correlation between Dook Media Group and Loctek Ergonomic Technology, you can compare the effects of market volatilities on Dook Media and Loctek Ergonomic 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 Dook Media with a short position of Loctek Ergonomic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dook Media and Loctek Ergonomic.
Diversification Opportunities for Dook Media and Loctek Ergonomic
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dook and Loctek is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Dook Media Group and Loctek Ergonomic Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loctek Ergonomic Tec and Dook Media 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 Dook Media Group are associated (or correlated) with Loctek Ergonomic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loctek Ergonomic Tec has no effect on the direction of Dook Media i.e., Dook Media and Loctek Ergonomic go up and down completely randomly.
Pair Corralation between Dook Media and Loctek Ergonomic
Assuming the 90 days trading horizon Dook Media Group is expected to generate 1.59 times more return on investment than Loctek Ergonomic. However, Dook Media is 1.59 times more volatile than Loctek Ergonomic Technology. It trades about -0.07 of its potential returns per unit of risk. Loctek Ergonomic Technology is currently generating about -0.28 per unit of risk. If you would invest 1,078 in Dook Media Group on September 27, 2024 and sell it today you would lose (70.00) from holding Dook Media Group or give up 6.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dook Media Group vs. Loctek Ergonomic Technology
Performance |
| Timeline |
| Dook Media Group |
| Loctek Ergonomic Tec |
Dook Media and Loctek Ergonomic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dook Media and Loctek Ergonomic
The main advantage of trading using opposite Dook Media and Loctek Ergonomic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dook Media position performs unexpectedly, Loctek Ergonomic 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 Loctek Ergonomic will offset losses from the drop in Loctek Ergonomic's long position.| Dook Media vs. PetroChina Co Ltd | Dook Media vs. China Mobile Limited | Dook Media vs. CNOOC Limited | Dook Media vs. Ping An Insurance |
| Loctek Ergonomic vs. Heilongjiang Publishing Media | Loctek Ergonomic vs. Quectel Wireless Solutions | Loctek Ergonomic vs. Hengdian Entertainment Co | Loctek Ergonomic vs. Dook Media Group |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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