Correlation Between Chahua Modern and Loctek Ergonomic
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By analyzing existing cross correlation between Chahua Modern Housewares and Loctek Ergonomic Technology, you can compare the effects of market volatilities on Chahua Modern 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 Chahua Modern with a short position of Loctek Ergonomic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chahua Modern and Loctek Ergonomic.
Diversification Opportunities for Chahua Modern and Loctek Ergonomic
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Chahua and Loctek is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Chahua Modern Housewares 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 Chahua Modern 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 Chahua Modern Housewares 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 Chahua Modern i.e., Chahua Modern and Loctek Ergonomic go up and down completely randomly.
Pair Corralation between Chahua Modern and Loctek Ergonomic
Assuming the 90 days trading horizon Chahua Modern Housewares is expected to generate 1.53 times more return on investment than Loctek Ergonomic. However, Chahua Modern is 1.53 times more volatile than Loctek Ergonomic Technology. It trades about 0.0 of its potential returns per unit of risk. Loctek Ergonomic Technology is currently generating about -0.1 per unit of risk. If you would invest 2,145 in Chahua Modern Housewares on October 16, 2024 and sell it today you would lose (72.00) from holding Chahua Modern Housewares or give up 3.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chahua Modern Housewares vs. Loctek Ergonomic Technology
Performance |
| Timeline |
| Chahua Modern Housewares |
| Loctek Ergonomic Tec |
Chahua Modern and Loctek Ergonomic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chahua Modern and Loctek Ergonomic
The main advantage of trading using opposite Chahua Modern and Loctek Ergonomic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chahua Modern 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.| Chahua Modern vs. Shenyang Blue Silver | Chahua Modern vs. Tibet Huayu Mining | Chahua Modern vs. CIMC Vehicles Co | Chahua Modern vs. Anhui Jianghuai Automobile |
| Loctek Ergonomic vs. Chahua Modern Housewares | Loctek Ergonomic vs. Kuang Chi Technologies | Loctek Ergonomic vs. Fiberhome Telecommunication Technologies | Loctek Ergonomic vs. Sichuan Jinshi 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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