Correlation Between Thinkingdom Media and Loctek Ergonomic
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By analyzing existing cross correlation between Thinkingdom Media Group and Loctek Ergonomic Technology, you can compare the effects of market volatilities on Thinkingdom Media 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 Thinkingdom Media with a short position of Loctek Ergonomic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thinkingdom Media and Loctek Ergonomic.
Diversification Opportunities for Thinkingdom Media and Loctek Ergonomic
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Thinkingdom and Loctek is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Thinkingdom Media Group 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 Thinkingdom Media 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 Thinkingdom Media Group 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 Thinkingdom Media i.e., Thinkingdom Media and Loctek Ergonomic go up and down completely randomly.
Pair Corralation between Thinkingdom Media and Loctek Ergonomic
Assuming the 90 days trading horizon Thinkingdom Media Group is expected to generate 1.01 times more return on investment than Loctek Ergonomic. However, Thinkingdom Media is 1.01 times more volatile than Loctek Ergonomic Technology. It trades about 0.07 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 1,840 in Thinkingdom Media Group on August 31, 2024 and sell it today you would earn a total of 396.00 from holding Thinkingdom Media Group or generate 21.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thinkingdom Media Group vs. Loctek Ergonomic Technology
Performance |
| Timeline |
| Thinkingdom Media |
| Loctek Ergonomic Tec |
Thinkingdom Media and Loctek Ergonomic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thinkingdom Media and Loctek Ergonomic
The main advantage of trading using opposite Thinkingdom Media and Loctek Ergonomic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thinkingdom Media 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.| Thinkingdom Media vs. BYD Co Ltd | Thinkingdom Media vs. Agricultural Bank of | Thinkingdom Media vs. Industrial and Commercial | Thinkingdom Media vs. China State Construction |
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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