Correlation Between Yonghui Superstores and Loctek Ergonomic
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By analyzing existing cross correlation between Yonghui Superstores Co and Loctek Ergonomic Technology, you can compare the effects of market volatilities on Yonghui Superstores 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 Yonghui Superstores with a short position of Loctek Ergonomic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yonghui Superstores and Loctek Ergonomic.
Diversification Opportunities for Yonghui Superstores and Loctek Ergonomic
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yonghui and Loctek is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Yonghui Superstores 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 Yonghui Superstores 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 Yonghui Superstores 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 Yonghui Superstores i.e., Yonghui Superstores and Loctek Ergonomic go up and down completely randomly.
Pair Corralation between Yonghui Superstores and Loctek Ergonomic
Assuming the 90 days trading horizon Yonghui Superstores Co is expected to generate 1.74 times more return on investment than Loctek Ergonomic. However, Yonghui Superstores is 1.74 times more volatile than Loctek Ergonomic Technology. It trades about 0.12 of its potential returns per unit of risk. Loctek Ergonomic Technology is currently generating about 0.04 per unit of risk. If you would invest 289.00 in Yonghui Superstores Co on August 31, 2024 and sell it today you would earn a total of 215.00 from holding Yonghui Superstores Co or generate 74.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yonghui Superstores Co vs. Loctek Ergonomic Technology
Performance |
| Timeline |
| Yonghui Superstores |
| Loctek Ergonomic Tec |
Yonghui Superstores and Loctek Ergonomic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yonghui Superstores and Loctek Ergonomic
The main advantage of trading using opposite Yonghui Superstores and Loctek Ergonomic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yonghui Superstores 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.| Yonghui Superstores vs. Lutian Machinery Co | Yonghui Superstores vs. PetroChina Co Ltd | Yonghui Superstores vs. Bank of China | Yonghui Superstores vs. Gansu Jiu Steel |
| 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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