Correlation Between Loctek Ergonomic and KSEC Intelligent
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By analyzing existing cross correlation between Loctek Ergonomic Technology and KSEC Intelligent Technology, you can compare the effects of market volatilities on Loctek Ergonomic and KSEC Intelligent 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 KSEC Intelligent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and KSEC Intelligent.
Diversification Opportunities for Loctek Ergonomic and KSEC Intelligent
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Loctek and KSEC is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and KSEC Intelligent Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KSEC Intelligent 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 KSEC Intelligent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KSEC Intelligent Tec has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and KSEC Intelligent go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and KSEC Intelligent
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to generate 0.77 times more return on investment than KSEC Intelligent. However, Loctek Ergonomic Technology is 1.31 times less risky than KSEC Intelligent. It trades about 0.03 of its potential returns per unit of risk. KSEC Intelligent Technology is currently generating about 0.02 per unit of risk. If you would invest 1,222 in Loctek Ergonomic Technology on September 26, 2024 and sell it today you would earn a total of 362.00 from holding Loctek Ergonomic Technology or generate 29.62% 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. KSEC Intelligent Technology
Performance |
Timeline |
Loctek Ergonomic Tec |
KSEC Intelligent Tec |
Loctek Ergonomic and KSEC Intelligent Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Loctek Ergonomic and KSEC Intelligent
The main advantage of trading using opposite Loctek Ergonomic and KSEC Intelligent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, KSEC Intelligent 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 KSEC Intelligent will offset losses from the drop in KSEC Intelligent's long position.Loctek Ergonomic vs. Ming Yang Smart | Loctek Ergonomic vs. 159681 | Loctek Ergonomic vs. 159005 | Loctek Ergonomic vs. Yes Optoelectronics Co |
KSEC Intelligent vs. Kweichow Moutai Co | KSEC Intelligent vs. Shenzhen Mindray Bio Medical | KSEC Intelligent vs. Jiangsu Pacific Quartz | KSEC Intelligent vs. G bits Network 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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