Correlation Between Guangxi Wuzhou and Loctek Ergonomic
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By analyzing existing cross correlation between Guangxi Wuzhou Communications and Loctek Ergonomic Technology, you can compare the effects of market volatilities on Guangxi Wuzhou 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 Guangxi Wuzhou with a short position of Loctek Ergonomic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangxi Wuzhou and Loctek Ergonomic.
Diversification Opportunities for Guangxi Wuzhou and Loctek Ergonomic
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Guangxi and Loctek is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Guangxi Wuzhou Communications 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 Guangxi Wuzhou 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 Guangxi Wuzhou Communications 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 Guangxi Wuzhou i.e., Guangxi Wuzhou and Loctek Ergonomic go up and down completely randomly.
Pair Corralation between Guangxi Wuzhou and Loctek Ergonomic
Assuming the 90 days trading horizon Guangxi Wuzhou Communications is expected to under-perform the Loctek Ergonomic. In addition to that, Guangxi Wuzhou is 1.98 times more volatile than Loctek Ergonomic Technology. It trades about -0.15 of its total potential returns per unit of risk. Loctek Ergonomic Technology is currently generating about -0.14 per unit of volatility. If you would invest 1,640 in Loctek Ergonomic Technology on October 21, 2024 and sell it today you would lose (107.00) from holding Loctek Ergonomic Technology or give up 6.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangxi Wuzhou Communications vs. Loctek Ergonomic Technology
Performance |
| Timeline |
| Guangxi Wuzhou Commu |
| Loctek Ergonomic Tec |
Guangxi Wuzhou and Loctek Ergonomic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangxi Wuzhou and Loctek Ergonomic
The main advantage of trading using opposite Guangxi Wuzhou and Loctek Ergonomic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangxi Wuzhou 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.| Guangxi Wuzhou vs. Western Metal Materials | Guangxi Wuzhou vs. China Minmetals Rare | Guangxi Wuzhou vs. Chengtun Mining Group | Guangxi Wuzhou vs. Tsingtao Brewery Co |
| Loctek Ergonomic vs. Xinjiang Baodi Mining | Loctek Ergonomic vs. Tianshui Huatian Technology | Loctek Ergonomic vs. Hubei Forbon Technology | Loctek Ergonomic vs. Jinyu Bio Technology Co |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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