Correlation Between HOB Biotech and Loctek Ergonomic
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By analyzing existing cross correlation between HOB Biotech Group and Loctek Ergonomic Technology, you can compare the effects of market volatilities on HOB 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 HOB Biotech with a short position of Loctek Ergonomic. Check out your portfolio center. Please also check ongoing floating volatility patterns of HOB Biotech and Loctek Ergonomic.
Diversification Opportunities for HOB Biotech and Loctek Ergonomic
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HOB and Loctek is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding HOB Biotech Group 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 HOB 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 HOB Biotech Group 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 HOB Biotech i.e., HOB Biotech and Loctek Ergonomic go up and down completely randomly.
Pair Corralation between HOB Biotech and Loctek Ergonomic
Assuming the 90 days trading horizon HOB Biotech Group is expected to under-perform the Loctek Ergonomic. In addition to that, HOB Biotech is 2.56 times more volatile than Loctek Ergonomic Technology. It trades about -0.17 of its total potential returns per unit of risk. Loctek Ergonomic Technology is currently generating about 0.0 per unit of volatility. If you would invest 1,608 in Loctek Ergonomic Technology on September 19, 2024 and sell it today you would lose (12.00) from holding Loctek Ergonomic Technology or give up 0.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HOB Biotech Group vs. Loctek Ergonomic Technology
Performance |
| Timeline |
| HOB Biotech Group |
| Loctek Ergonomic Tec |
HOB Biotech and Loctek Ergonomic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HOB Biotech and Loctek Ergonomic
The main advantage of trading using opposite HOB Biotech and Loctek Ergonomic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HOB 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.| HOB Biotech vs. Industrial and Commercial | HOB Biotech vs. Kweichow Moutai Co | HOB Biotech vs. Agricultural Bank of | HOB Biotech vs. China Mobile Limited |
| Loctek Ergonomic vs. Luyin Investment Group | Loctek Ergonomic vs. Jointo Energy Investment | Loctek Ergonomic vs. Xiandai Investment Co | Loctek Ergonomic vs. Guangdong Shenglu Telecommunication |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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