Correlation Between Kunshan Guoli and Loctek Ergonomic
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By analyzing existing cross correlation between Kunshan Guoli Electronic and Loctek Ergonomic Technology, you can compare the effects of market volatilities on Kunshan Guoli 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 Kunshan Guoli with a short position of Loctek Ergonomic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kunshan Guoli and Loctek Ergonomic.
Diversification Opportunities for Kunshan Guoli and Loctek Ergonomic
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kunshan and Loctek is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Kunshan Guoli Electronic 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 Kunshan Guoli 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 Kunshan Guoli Electronic 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 Kunshan Guoli i.e., Kunshan Guoli and Loctek Ergonomic go up and down completely randomly.
Pair Corralation between Kunshan Guoli and Loctek Ergonomic
Assuming the 90 days trading horizon Kunshan Guoli Electronic is expected to under-perform the Loctek Ergonomic. In addition to that, Kunshan Guoli is 1.92 times more volatile than Loctek Ergonomic Technology. It trades about -0.06 of its total potential returns per unit of risk. Loctek Ergonomic Technology is currently generating about 0.12 per unit of volatility. If you would invest 1,638 in Loctek Ergonomic Technology on August 28, 2024 and sell it today you would earn a total of 89.00 from holding Loctek Ergonomic Technology or generate 5.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kunshan Guoli Electronic vs. Loctek Ergonomic Technology
Performance |
| Timeline |
| Kunshan Guoli Electronic |
| Loctek Ergonomic Tec |
Kunshan Guoli and Loctek Ergonomic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kunshan Guoli and Loctek Ergonomic
The main advantage of trading using opposite Kunshan Guoli and Loctek Ergonomic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kunshan Guoli 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.| Kunshan Guoli vs. Nanjing Putian Telecommunications | Kunshan Guoli vs. Shenzhen Hifuture Electric | Kunshan Guoli vs. Shenyang Huitian Thermal | Kunshan Guoli vs. Jiangsu Xinning Modern |
| 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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