Correlation Between Tonghua Grape and Loctek Ergonomic
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By analyzing existing cross correlation between Tonghua Grape Wine and Loctek Ergonomic Technology, you can compare the effects of market volatilities on Tonghua Grape 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 Tonghua Grape with a short position of Loctek Ergonomic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tonghua Grape and Loctek Ergonomic.
Diversification Opportunities for Tonghua Grape and Loctek Ergonomic
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tonghua and Loctek is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Tonghua Grape Wine 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 Tonghua Grape 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 Tonghua Grape Wine 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 Tonghua Grape i.e., Tonghua Grape and Loctek Ergonomic go up and down completely randomly.
Pair Corralation between Tonghua Grape and Loctek Ergonomic
Assuming the 90 days trading horizon Tonghua Grape Wine is expected to under-perform the Loctek Ergonomic. In addition to that, Tonghua Grape is 1.27 times more volatile than Loctek Ergonomic Technology. It trades about -0.21 of its total potential returns per unit of risk. Loctek Ergonomic Technology is currently generating about 0.06 per unit of volatility. If you would invest 1,530 in Loctek Ergonomic Technology on November 3, 2024 and sell it today you would earn a total of 32.00 from holding Loctek Ergonomic Technology or generate 2.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tonghua Grape Wine vs. Loctek Ergonomic Technology
Performance |
| Timeline |
| Tonghua Grape Wine |
| Loctek Ergonomic Tec |
Tonghua Grape and Loctek Ergonomic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tonghua Grape and Loctek Ergonomic
The main advantage of trading using opposite Tonghua Grape and Loctek Ergonomic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tonghua Grape 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.| Tonghua Grape vs. Gan Yuan Foods | Tonghua Grape vs. Jiahe Foods Industry | Tonghua Grape vs. Shanghai Ziyan Foods | Tonghua Grape vs. Chison Medical Technologies |
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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