Correlation Between Shuhua Sports and Loctek Ergonomic
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By analyzing existing cross correlation between Shuhua Sports Co and Loctek Ergonomic Technology, you can compare the effects of market volatilities on Shuhua Sports 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 Shuhua Sports with a short position of Loctek Ergonomic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shuhua Sports and Loctek Ergonomic.
Diversification Opportunities for Shuhua Sports and Loctek Ergonomic
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shuhua and Loctek is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Shuhua Sports 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 Shuhua Sports 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 Shuhua Sports 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 Shuhua Sports i.e., Shuhua Sports and Loctek Ergonomic go up and down completely randomly.
Pair Corralation between Shuhua Sports and Loctek Ergonomic
Assuming the 90 days trading horizon Shuhua Sports Co is expected to generate 1.86 times more return on investment than Loctek Ergonomic. However, Shuhua Sports is 1.86 times more volatile than Loctek Ergonomic Technology. It trades about 0.01 of its potential returns per unit of risk. Loctek Ergonomic Technology is currently generating about -0.22 per unit of risk. If you would invest 879.00 in Shuhua Sports Co on October 12, 2024 and sell it today you would lose (7.00) from holding Shuhua Sports Co or give up 0.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shuhua Sports Co vs. Loctek Ergonomic Technology
Performance |
| Timeline |
| Shuhua Sports |
| Loctek Ergonomic Tec |
Shuhua Sports and Loctek Ergonomic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shuhua Sports and Loctek Ergonomic
The main advantage of trading using opposite Shuhua Sports and Loctek Ergonomic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shuhua Sports 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.| Shuhua Sports vs. Zhongshan Public Utilities | Shuhua Sports vs. Hongrun Construction Group | Shuhua Sports vs. Zhejiang Kingland Pipeline | Shuhua Sports vs. Anhui Huilong Agricultural |
| Loctek Ergonomic vs. Anhui Gujing Distillery | Loctek Ergonomic vs. Southern PublishingMedia Co | Loctek Ergonomic vs. Shuhua Sports Co | Loctek Ergonomic vs. Guangzhou Jinyi Media |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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