Correlation Between Loctek Ergonomic and Tianshui Huatian
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Tianshui Huatian Technology, you can compare the effects of market volatilities on Loctek Ergonomic and Tianshui Huatian 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 Tianshui Huatian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Tianshui Huatian.
Diversification Opportunities for Loctek Ergonomic and Tianshui Huatian
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Loctek and Tianshui is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Tianshui Huatian Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianshui Huatian Tec 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 Tianshui Huatian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianshui Huatian Tec has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Tianshui Huatian go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Tianshui Huatian
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to under-perform the Tianshui Huatian. In addition to that, Loctek Ergonomic is 2.11 times more volatile than Tianshui Huatian Technology. It trades about -0.16 of its total potential returns per unit of risk. Tianshui Huatian Technology is currently generating about 0.1 per unit of volatility. If you would invest 1,166 in Tianshui Huatian Technology on September 25, 2024 and sell it today you would earn a total of 27.00 from holding Tianshui Huatian Technology or generate 2.32% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Loctek Ergonomic Technology vs. Tianshui Huatian Technology
Performance |
Timeline |
Loctek Ergonomic Tec |
Tianshui Huatian Tec |
Loctek Ergonomic and Tianshui Huatian Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Loctek Ergonomic and Tianshui Huatian
The main advantage of trading using opposite Loctek Ergonomic and Tianshui Huatian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Tianshui Huatian 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 Tianshui Huatian will offset losses from the drop in Tianshui Huatian's long position.Loctek Ergonomic vs. Ming Yang Smart | Loctek Ergonomic vs. 159681 | Loctek Ergonomic vs. 159005 | Loctek Ergonomic vs. Yes Optoelectronics Co |
Tianshui Huatian vs. Ming Yang Smart | Tianshui Huatian vs. 159681 | Tianshui Huatian vs. 159005 | Tianshui Huatian 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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