Correlation Between Loctek Ergonomic and Shenzhen MTC
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Shenzhen MTC Co, you can compare the effects of market volatilities on Loctek Ergonomic and Shenzhen MTC 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 Shenzhen MTC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Shenzhen MTC.
Diversification Opportunities for Loctek Ergonomic and Shenzhen MTC
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Loctek and Shenzhen is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Shenzhen MTC Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen MTC 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 Shenzhen MTC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen MTC has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Shenzhen MTC go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Shenzhen MTC
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to generate 0.76 times more return on investment than Shenzhen MTC. However, Loctek Ergonomic Technology is 1.31 times less risky than Shenzhen MTC. It trades about -0.15 of its potential returns per unit of risk. Shenzhen MTC Co is currently generating about -0.22 per unit of risk. If you would invest 1,590 in Loctek Ergonomic Technology on October 27, 2024 and sell it today you would lose (97.00) from holding Loctek Ergonomic Technology or give up 6.1% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Loctek Ergonomic Technology vs. Shenzhen MTC Co
Performance |
Timeline |
Loctek Ergonomic Tec |
Shenzhen MTC |
Loctek Ergonomic and Shenzhen MTC Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Loctek Ergonomic and Shenzhen MTC
The main advantage of trading using opposite Loctek Ergonomic and Shenzhen MTC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Shenzhen MTC 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 Shenzhen MTC will offset losses from the drop in Shenzhen MTC's long position.Loctek Ergonomic vs. Shenzhen Urban Transport | Loctek Ergonomic vs. Union Semiconductor Co | Loctek Ergonomic vs. Zhejiang Kingland Pipeline | Loctek Ergonomic vs. Thinkon Semiconductor Jinzhou |
Shenzhen MTC vs. Zhejiang JIULI Hi tech | Shenzhen MTC vs. FSPG Hi Tech Co | Shenzhen MTC vs. Tianjin Hi Tech Development | Shenzhen MTC vs. Beijing Kaiwen Education |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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