Correlation Between Loctek Ergonomic and Jonjee Hi
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Jonjee Hi tech Industrial, you can compare the effects of market volatilities on Loctek Ergonomic and Jonjee Hi 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 Jonjee Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Jonjee Hi.
Diversification Opportunities for Loctek Ergonomic and Jonjee Hi
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Loctek and Jonjee is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Jonjee Hi tech Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jonjee Hi tech 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 Jonjee Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jonjee Hi tech has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Jonjee Hi go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Jonjee Hi
Assuming the 90 days trading horizon Loctek Ergonomic is expected to generate 1.89 times less return on investment than Jonjee Hi. In addition to that, Loctek Ergonomic is 1.08 times more volatile than Jonjee Hi tech Industrial. It trades about 0.07 of its total potential returns per unit of risk. Jonjee Hi tech Industrial is currently generating about 0.15 per unit of volatility. If you would invest 1,801 in Jonjee Hi tech Industrial on September 25, 2024 and sell it today you would earn a total of 543.00 from holding Jonjee Hi tech Industrial or generate 30.15% 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. Jonjee Hi tech Industrial
Performance |
Timeline |
Loctek Ergonomic Tec |
Jonjee Hi tech |
Loctek Ergonomic and Jonjee Hi Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Loctek Ergonomic and Jonjee Hi
The main advantage of trading using opposite Loctek Ergonomic and Jonjee Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Jonjee Hi 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 Jonjee Hi will offset losses from the drop in Jonjee Hi's long position.Loctek Ergonomic vs. Ming Yang Smart | Loctek Ergonomic vs. 159681 | Loctek Ergonomic vs. 159005 | Loctek Ergonomic vs. Yes Optoelectronics Co |
Jonjee Hi vs. Ming Yang Smart | Jonjee Hi vs. 159681 | Jonjee Hi vs. 159005 | Jonjee Hi 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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