Correlation Between CITIC Securities and Loctek Ergonomic
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By analyzing existing cross correlation between CITIC Securities Co and Loctek Ergonomic Technology, you can compare the effects of market volatilities on CITIC Securities 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 CITIC Securities with a short position of Loctek Ergonomic. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Securities and Loctek Ergonomic.
Diversification Opportunities for CITIC Securities and Loctek Ergonomic
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between CITIC and Loctek is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Securities Co 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 CITIC Securities 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 CITIC Securities Co 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 CITIC Securities i.e., CITIC Securities and Loctek Ergonomic go up and down completely randomly.
Pair Corralation between CITIC Securities and Loctek Ergonomic
Assuming the 90 days trading horizon CITIC Securities Co is expected to generate 1.35 times more return on investment than Loctek Ergonomic. However, CITIC Securities is 1.35 times more volatile than Loctek Ergonomic Technology. It trades about 0.17 of its potential returns per unit of risk. Loctek Ergonomic Technology is currently generating about 0.15 per unit of risk. If you would invest 2,746 in CITIC Securities Co on August 31, 2024 and sell it today you would earn a total of 329.00 from holding CITIC Securities Co or generate 11.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CITIC Securities Co vs. Loctek Ergonomic Technology
Performance |
| Timeline |
| CITIC Securities |
| Loctek Ergonomic Tec |
CITIC Securities and Loctek Ergonomic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Securities and Loctek Ergonomic
The main advantage of trading using opposite CITIC Securities and Loctek Ergonomic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Securities 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.| CITIC Securities vs. Hangzhou Pinming Software | CITIC Securities vs. Ciwen Media Co | CITIC Securities vs. Sportsoul Co Ltd | CITIC Securities vs. Focus Media Information |
| Loctek Ergonomic vs. Union Semiconductor Co | Loctek Ergonomic vs. Jinhui Mining Co | Loctek Ergonomic vs. Fujian Oriental Silver | Loctek Ergonomic vs. Southchip Semiconductor Technology |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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