Correlation Between Loctek Ergonomic and Shaanxi Broadcast
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Shaanxi Broadcast TV, you can compare the effects of market volatilities on Loctek Ergonomic and Shaanxi Broadcast 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 Shaanxi Broadcast. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Shaanxi Broadcast.
Diversification Opportunities for Loctek Ergonomic and Shaanxi Broadcast
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Loctek and Shaanxi is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Shaanxi Broadcast TV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Broadcast 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 Shaanxi Broadcast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Broadcast has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Shaanxi Broadcast go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Shaanxi Broadcast
Assuming the 90 days trading horizon Loctek Ergonomic is expected to generate 1.5 times less return on investment than Shaanxi Broadcast. In addition to that, Loctek Ergonomic is 1.29 times more volatile than Shaanxi Broadcast TV. It trades about 0.13 of its total potential returns per unit of risk. Shaanxi Broadcast TV is currently generating about 0.25 per unit of volatility. If you would invest 202.00 in Shaanxi Broadcast TV on September 12, 2024 and sell it today you would earn a total of 90.00 from holding Shaanxi Broadcast TV or generate 44.55% 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. Shaanxi Broadcast TV
Performance |
Timeline |
Loctek Ergonomic Tec |
Shaanxi Broadcast |
Loctek Ergonomic and Shaanxi Broadcast Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Loctek Ergonomic and Shaanxi Broadcast
The main advantage of trading using opposite Loctek Ergonomic and Shaanxi Broadcast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Shaanxi Broadcast 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 Shaanxi Broadcast will offset losses from the drop in Shaanxi Broadcast's long position.Loctek Ergonomic vs. Uxi Unicomp Technology | Loctek Ergonomic vs. Maxvision Technology Corp | Loctek Ergonomic vs. Olympic Circuit Technology | Loctek Ergonomic vs. Shandong Sanyuan Biotechnology |
Shaanxi Broadcast vs. Kweichow Moutai Co | Shaanxi Broadcast vs. Shenzhen Mindray Bio Medical | Shaanxi Broadcast vs. G bits Network Technology | Shaanxi Broadcast vs. Beijing Roborock 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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