Correlation Between ACM Research and Loctek Ergonomic
Specify exactly 2 symbols:
By analyzing existing cross correlation between ACM Research Shanghai and Loctek Ergonomic Technology, you can compare the effects of market volatilities on ACM Research 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 ACM Research with a short position of Loctek Ergonomic. Check out your portfolio center. Please also check ongoing floating volatility patterns of ACM Research and Loctek Ergonomic.
Diversification Opportunities for ACM Research and Loctek Ergonomic
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ACM and Loctek is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding ACM Research Shanghai 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 ACM Research 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 ACM Research Shanghai 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 ACM Research i.e., ACM Research and Loctek Ergonomic go up and down completely randomly.
Pair Corralation between ACM Research and Loctek Ergonomic
Assuming the 90 days trading horizon ACM Research is expected to generate 1.04 times less return on investment than Loctek Ergonomic. In addition to that, ACM Research is 1.04 times more volatile than Loctek Ergonomic Technology. It trades about 0.03 of its total potential returns per unit of risk. Loctek Ergonomic Technology is currently generating about 0.04 per unit of volatility. If you would invest 1,204 in Loctek Ergonomic Technology on September 23, 2024 and sell it today you would earn a total of 436.00 from holding Loctek Ergonomic Technology or generate 36.21% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
ACM Research Shanghai vs. Loctek Ergonomic Technology
Performance |
Timeline |
ACM Research Shanghai |
Loctek Ergonomic Tec |
ACM Research and Loctek Ergonomic Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ACM Research and Loctek Ergonomic
The main advantage of trading using opposite ACM Research and Loctek Ergonomic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ACM Research 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.ACM Research vs. Ming Yang Smart | ACM Research vs. 159681 | ACM Research vs. 159005 | ACM Research vs. Loctek Ergonomic Technology |
Loctek Ergonomic vs. BYD Co Ltd | Loctek Ergonomic vs. China Mobile Limited | Loctek Ergonomic vs. Agricultural Bank of | Loctek Ergonomic vs. Industrial and Commercial |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |