Correlation Between Anhui Transport and Loctek Ergonomic
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By analyzing existing cross correlation between Anhui Transport Consulting and Loctek Ergonomic Technology, you can compare the effects of market volatilities on Anhui Transport 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 Anhui Transport with a short position of Loctek Ergonomic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Transport and Loctek Ergonomic.
Diversification Opportunities for Anhui Transport and Loctek Ergonomic
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anhui and Loctek is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Transport Consulting 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 Anhui Transport 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 Anhui Transport Consulting 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 Anhui Transport i.e., Anhui Transport and Loctek Ergonomic go up and down completely randomly.
Pair Corralation between Anhui Transport and Loctek Ergonomic
Assuming the 90 days trading horizon Anhui Transport is expected to generate 1.23 times less return on investment than Loctek Ergonomic. But when comparing it to its historical volatility, Anhui Transport Consulting is 1.11 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 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,226 in Loctek Ergonomic Technology on October 9, 2024 and sell it today you would earn a total of 279.00 from holding Loctek Ergonomic Technology or generate 22.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Transport Consulting vs. Loctek Ergonomic Technology
Performance |
| Timeline |
| Anhui Transport Cons |
| Loctek Ergonomic Tec |
Anhui Transport and Loctek Ergonomic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Transport and Loctek Ergonomic
The main advantage of trading using opposite Anhui Transport and Loctek Ergonomic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Transport 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.| Anhui Transport vs. PetroChina Co Ltd | Anhui Transport vs. China Mobile Limited | Anhui Transport vs. CNOOC Limited | Anhui Transport vs. Ping An Insurance |
| Loctek Ergonomic vs. Sinomach Automobile Co | Loctek Ergonomic vs. Hangzhou Pinming Software | Loctek Ergonomic vs. Xiangyang Automobile Bearing | Loctek Ergonomic vs. Fujian Boss Software |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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