Correlation Between CSSC Offshore and Loctek Ergonomic
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By analyzing existing cross correlation between CSSC Offshore Marine and Loctek Ergonomic Technology, you can compare the effects of market volatilities on CSSC Offshore 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 CSSC Offshore with a short position of Loctek Ergonomic. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSSC Offshore and Loctek Ergonomic.
Diversification Opportunities for CSSC Offshore and Loctek Ergonomic
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CSSC and Loctek is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding CSSC Offshore Marine 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 CSSC Offshore 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 CSSC Offshore Marine 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 CSSC Offshore i.e., CSSC Offshore and Loctek Ergonomic go up and down completely randomly.
Pair Corralation between CSSC Offshore and Loctek Ergonomic
Assuming the 90 days trading horizon CSSC Offshore is expected to generate 1.98 times less return on investment than Loctek Ergonomic. But when comparing it to its historical volatility, CSSC Offshore Marine is 1.26 times less risky than Loctek Ergonomic. It trades about 0.03 of its potential returns per unit of risk. Loctek Ergonomic Technology is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,213 in Loctek Ergonomic Technology on August 31, 2024 and sell it today you would earn a total of 516.00 from holding Loctek Ergonomic Technology or generate 42.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CSSC Offshore Marine vs. Loctek Ergonomic Technology
Performance |
| Timeline |
| CSSC Offshore Marine |
| Loctek Ergonomic Tec |
CSSC Offshore and Loctek Ergonomic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSSC Offshore and Loctek Ergonomic
The main advantage of trading using opposite CSSC Offshore and Loctek Ergonomic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSSC Offshore 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.| CSSC Offshore vs. Cultural Investment Holdings | CSSC Offshore vs. Gome Telecom Equipment | CSSC Offshore vs. Bus Online Co | CSSC Offshore vs. Holitech Technology Co |
| 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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