Correlation Between Loctek Ergonomic and Anhui Tongguan
Specify exactly 2 symbols:
By analyzing existing cross correlation between Loctek Ergonomic Technology and Anhui Tongguan Copper, you can compare the effects of market volatilities on Loctek Ergonomic and Anhui Tongguan 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 Loctek Ergonomic with a short position of Anhui Tongguan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Anhui Tongguan.
Diversification Opportunities for Loctek Ergonomic and Anhui Tongguan
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Loctek and Anhui is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Anhui Tongguan Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Tongguan Copper and Loctek Ergonomic 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 Loctek Ergonomic Technology are associated (or correlated) with Anhui Tongguan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Tongguan Copper has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Anhui Tongguan go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Anhui Tongguan
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to under-perform the Anhui Tongguan. In addition to that, Loctek Ergonomic is 1.4 times more volatile than Anhui Tongguan Copper. It trades about -0.16 of its total potential returns per unit of risk. Anhui Tongguan Copper is currently generating about -0.15 per unit of volatility. If you would invest 1,120 in Anhui Tongguan Copper on September 25, 2024 and sell it today you would lose (65.00) from holding Anhui Tongguan Copper or give up 5.8% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Loctek Ergonomic Technology vs. Anhui Tongguan Copper
Performance |
Timeline |
Loctek Ergonomic Tec |
Anhui Tongguan Copper |
Loctek Ergonomic and Anhui Tongguan Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Loctek Ergonomic and Anhui Tongguan
The main advantage of trading using opposite Loctek Ergonomic and Anhui Tongguan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Anhui Tongguan 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 Anhui Tongguan will offset losses from the drop in Anhui Tongguan's long position.Loctek Ergonomic vs. Ming Yang Smart | Loctek Ergonomic vs. 159681 | Loctek Ergonomic vs. 159005 | Loctek Ergonomic vs. Yes Optoelectronics Co |
Anhui Tongguan vs. Ming Yang Smart | Anhui Tongguan vs. 159681 | Anhui Tongguan vs. 159005 | Anhui Tongguan vs. Loctek Ergonomic Technology |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |