Correlation Between Cabio Biotech and Loctek Ergonomic
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By analyzing existing cross correlation between Cabio Biotech Wuhan and Loctek Ergonomic Technology, you can compare the effects of market volatilities on Cabio Biotech 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 Cabio Biotech with a short position of Loctek Ergonomic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cabio Biotech and Loctek Ergonomic.
Diversification Opportunities for Cabio Biotech and Loctek Ergonomic
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cabio and Loctek is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Cabio Biotech Wuhan 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 Cabio Biotech 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 Cabio Biotech Wuhan 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 Cabio Biotech i.e., Cabio Biotech and Loctek Ergonomic go up and down completely randomly.
Pair Corralation between Cabio Biotech and Loctek Ergonomic
Assuming the 90 days trading horizon Cabio Biotech Wuhan is expected to generate 0.98 times more return on investment than Loctek Ergonomic. However, Cabio Biotech Wuhan is 1.02 times less risky than Loctek Ergonomic. It trades about 0.29 of its potential returns per unit of risk. Loctek Ergonomic Technology is currently generating about 0.11 per unit of risk. If you would invest 1,809 in Cabio Biotech Wuhan on November 6, 2024 and sell it today you would earn a total of 196.00 from holding Cabio Biotech Wuhan or generate 10.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cabio Biotech Wuhan vs. Loctek Ergonomic Technology
Performance |
| Timeline |
| Cabio Biotech Wuhan |
| Loctek Ergonomic Tec |
Cabio Biotech and Loctek Ergonomic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cabio Biotech and Loctek Ergonomic
The main advantage of trading using opposite Cabio Biotech and Loctek Ergonomic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cabio Biotech 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.| Cabio Biotech vs. Yili Chuanning Biotechnology | Cabio Biotech vs. TianJin 712 Communication | Cabio Biotech vs. Allwin Telecommunication Co | Cabio Biotech vs. Maccura Biotechnology Co |
| Loctek Ergonomic vs. Integrated Electronic Systems | Loctek Ergonomic vs. Dongnan Electronics Co | Loctek Ergonomic vs. Epoxy Base Electronic | Loctek Ergonomic vs. Beijing Kingsoft Office |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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