Correlation Between Bank of Chengdu and Loctek Ergonomic
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By analyzing existing cross correlation between Bank of Chengdu and Loctek Ergonomic Technology, you can compare the effects of market volatilities on Bank of Chengdu 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 Bank of Chengdu with a short position of Loctek Ergonomic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Chengdu and Loctek Ergonomic.
Diversification Opportunities for Bank of Chengdu and Loctek Ergonomic
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and Loctek is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Chengdu 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 Bank of Chengdu 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 Bank of Chengdu 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 Bank of Chengdu i.e., Bank of Chengdu and Loctek Ergonomic go up and down completely randomly.
Pair Corralation between Bank of Chengdu and Loctek Ergonomic
Assuming the 90 days trading horizon Bank of Chengdu is expected to generate 0.5 times more return on investment than Loctek Ergonomic. However, Bank of Chengdu is 1.98 times less risky than Loctek Ergonomic. It trades about 0.07 of its potential returns per unit of risk. Loctek Ergonomic Technology is currently generating about 0.02 per unit of risk. If you would invest 1,236 in Bank of Chengdu on October 25, 2024 and sell it today you would earn a total of 403.00 from holding Bank of Chengdu or generate 32.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of Chengdu vs. Loctek Ergonomic Technology
Performance |
| Timeline |
| Bank of Chengdu |
| Loctek Ergonomic Tec |
Bank of Chengdu and Loctek Ergonomic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Chengdu and Loctek Ergonomic
The main advantage of trading using opposite Bank of Chengdu and Loctek Ergonomic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Chengdu 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.| Bank of Chengdu vs. Suzhou Mingzhi Technology | Bank of Chengdu vs. Jilin Jlu Communication | Bank of Chengdu vs. China Eastern Airlines | Bank of Chengdu vs. XiaMen HongXin Electron tech |
| Loctek Ergonomic vs. Shanghai Rongtai Health | Loctek Ergonomic vs. Humanwell Healthcare Group | Loctek Ergonomic vs. Yunnan Jianzhijia Health Chain | Loctek Ergonomic vs. Impulse Qingdao Health |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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