Correlation Between Jiujiang Shanshui and Loctek Ergonomic
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By analyzing existing cross correlation between Jiujiang Shanshui Technology and Loctek Ergonomic Technology, you can compare the effects of market volatilities on Jiujiang Shanshui 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 Jiujiang Shanshui with a short position of Loctek Ergonomic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiujiang Shanshui and Loctek Ergonomic.
Diversification Opportunities for Jiujiang Shanshui and Loctek Ergonomic
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiujiang and Loctek is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Jiujiang Shanshui Technology 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 Jiujiang Shanshui 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 Jiujiang Shanshui Technology 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 Jiujiang Shanshui i.e., Jiujiang Shanshui and Loctek Ergonomic go up and down completely randomly.
Pair Corralation between Jiujiang Shanshui and Loctek Ergonomic
Assuming the 90 days trading horizon Jiujiang Shanshui is expected to generate 1.15 times less return on investment than Loctek Ergonomic. But when comparing it to its historical volatility, Jiujiang Shanshui Technology is 1.65 times less risky than Loctek Ergonomic. It trades about 0.16 of its potential returns per unit of risk. Loctek Ergonomic Technology is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,505 in Loctek Ergonomic Technology on November 6, 2024 and sell it today you would earn a total of 57.00 from holding Loctek Ergonomic Technology or generate 3.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiujiang Shanshui Technology vs. Loctek Ergonomic Technology
Performance |
| Timeline |
| Jiujiang Shanshui |
| Loctek Ergonomic Tec |
Jiujiang Shanshui and Loctek Ergonomic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiujiang Shanshui and Loctek Ergonomic
The main advantage of trading using opposite Jiujiang Shanshui and Loctek Ergonomic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiujiang Shanshui 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.| Jiujiang Shanshui vs. Sinomach Automobile Co | Jiujiang Shanshui vs. Eyebright Medical Technology | Jiujiang Shanshui vs. Anhui Jianghuai Automobile | Jiujiang Shanshui vs. Changchun Engley Automobile |
| Loctek Ergonomic vs. Integrated Electronic Systems | Loctek Ergonomic vs. Dongnan Electronics Co | Loctek Ergonomic vs. Epoxy Base Electronic | Loctek Ergonomic vs. Beijing Kingsoft Office |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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