Correlation Between Jiangsu Seagull and Loctek Ergonomic
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By analyzing existing cross correlation between Jiangsu Seagull Cooling and Loctek Ergonomic Technology, you can compare the effects of market volatilities on Jiangsu Seagull 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 Jiangsu Seagull with a short position of Loctek Ergonomic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Seagull and Loctek Ergonomic.
Diversification Opportunities for Jiangsu Seagull and Loctek Ergonomic
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangsu and Loctek is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Seagull Cooling 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 Jiangsu Seagull 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 Jiangsu Seagull Cooling 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 Jiangsu Seagull i.e., Jiangsu Seagull and Loctek Ergonomic go up and down completely randomly.
Pair Corralation between Jiangsu Seagull and Loctek Ergonomic
Assuming the 90 days trading horizon Jiangsu Seagull is expected to generate 1.56 times less return on investment than Loctek Ergonomic. In addition to that, Jiangsu Seagull is 1.2 times more volatile than Loctek Ergonomic Technology. It trades about 0.02 of its total potential returns per unit of risk. Loctek Ergonomic Technology is currently generating about 0.03 per unit of volatility. If you would invest 1,302 in Loctek Ergonomic Technology on August 28, 2024 and sell it today you would earn a total of 425.00 from holding Loctek Ergonomic Technology or generate 32.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Seagull Cooling vs. Loctek Ergonomic Technology
Performance |
| Timeline |
| Jiangsu Seagull Cooling |
| Loctek Ergonomic Tec |
Jiangsu Seagull and Loctek Ergonomic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Seagull and Loctek Ergonomic
The main advantage of trading using opposite Jiangsu Seagull and Loctek Ergonomic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Seagull 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.| Jiangsu Seagull vs. Chengtun Mining Group | Jiangsu Seagull vs. Allmed Medical Products | Jiangsu Seagull vs. Uroica Mining Safety | Jiangsu Seagull vs. Zhejiang Yayi Metal |
| Loctek Ergonomic vs. Leaguer Shenzhen MicroElectronics | Loctek Ergonomic vs. CSSC Offshore Marine | Loctek Ergonomic vs. Kunshan Guoli Electronic | Loctek Ergonomic vs. Easyhome New Retail |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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