Correlation Between Yonyou Auto and Loctek Ergonomic
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By analyzing existing cross correlation between Yonyou Auto Information and Loctek Ergonomic Technology, you can compare the effects of market volatilities on Yonyou Auto 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 Yonyou Auto with a short position of Loctek Ergonomic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yonyou Auto and Loctek Ergonomic.
Diversification Opportunities for Yonyou Auto and Loctek Ergonomic
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Yonyou and Loctek is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Yonyou Auto Information 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 Yonyou Auto 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 Yonyou Auto Information 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 Yonyou Auto i.e., Yonyou Auto and Loctek Ergonomic go up and down completely randomly.
Pair Corralation between Yonyou Auto and Loctek Ergonomic
Assuming the 90 days trading horizon Yonyou Auto Information is expected to generate 0.96 times more return on investment than Loctek Ergonomic. However, Yonyou Auto Information is 1.04 times less risky than Loctek Ergonomic. It trades about -0.02 of its potential returns per unit of risk. Loctek Ergonomic Technology is currently generating about -0.03 per unit of risk. If you would invest 2,066 in Yonyou Auto Information on September 3, 2024 and sell it today you would lose (88.00) from holding Yonyou Auto Information or give up 4.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yonyou Auto Information vs. Loctek Ergonomic Technology
Performance |
| Timeline |
| Yonyou Auto Information |
| Loctek Ergonomic Tec |
Yonyou Auto and Loctek Ergonomic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yonyou Auto and Loctek Ergonomic
The main advantage of trading using opposite Yonyou Auto and Loctek Ergonomic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yonyou Auto 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.| Yonyou Auto vs. Agricultural Bank of | Yonyou Auto vs. China Construction Bank | Yonyou Auto vs. Postal Savings Bank | Yonyou Auto vs. Bank of Communications |
| Loctek Ergonomic vs. Digital China Information | Loctek Ergonomic vs. ButOne Information Corp | Loctek Ergonomic vs. Tianshan Aluminum Group | Loctek Ergonomic vs. Anhui Gujing Distillery |
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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