Correlation Between Loctek Ergonomic and Xiamen CD
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Xiamen CD, you can compare the effects of market volatilities on Loctek Ergonomic and Xiamen CD 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 Xiamen CD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Xiamen CD.
Diversification Opportunities for Loctek Ergonomic and Xiamen CD
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Loctek and Xiamen is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Xiamen CD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen CD 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 Xiamen CD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen CD has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Xiamen CD go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Xiamen CD
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to under-perform the Xiamen CD. In addition to that, Loctek Ergonomic is 1.9 times more volatile than Xiamen CD. It trades about -0.09 of its total potential returns per unit of risk. Xiamen CD is currently generating about 0.37 per unit of volatility. If you would invest 941.00 in Xiamen CD on September 24, 2024 and sell it today you would earn a total of 96.00 from holding Xiamen CD or generate 10.2% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Loctek Ergonomic Technology vs. Xiamen CD
Performance |
Timeline |
Loctek Ergonomic Tec |
Xiamen CD |
Loctek Ergonomic and Xiamen CD Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Loctek Ergonomic and Xiamen CD
The main advantage of trading using opposite Loctek Ergonomic and Xiamen CD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Xiamen CD 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 Xiamen CD will offset losses from the drop in Xiamen CD's long position.Loctek Ergonomic vs. Ming Yang Smart | Loctek Ergonomic vs. 159681 | Loctek Ergonomic vs. 159005 | Loctek Ergonomic vs. Yes Optoelectronics Co |
Xiamen CD vs. Ming Yang Smart | Xiamen CD vs. 159681 | Xiamen CD vs. 159005 | Xiamen CD 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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