Correlation Between Loctek Ergonomic and Jiangsu Financial
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Jiangsu Financial Leasing, you can compare the effects of market volatilities on Loctek Ergonomic and Jiangsu Financial 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 Jiangsu Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Jiangsu Financial.
Diversification Opportunities for Loctek Ergonomic and Jiangsu Financial
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Loctek and Jiangsu is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Jiangsu Financial Leasing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Financial Leasing 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 Jiangsu Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Financial Leasing has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Jiangsu Financial go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Jiangsu Financial
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to under-perform the Jiangsu Financial. In addition to that, Loctek Ergonomic is 3.07 times more volatile than Jiangsu Financial Leasing. It trades about -0.16 of its total potential returns per unit of risk. Jiangsu Financial Leasing is currently generating about 0.2 per unit of volatility. If you would invest 496.00 in Jiangsu Financial Leasing on September 25, 2024 and sell it today you would earn a total of 17.00 from holding Jiangsu Financial Leasing or generate 3.43% 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. Jiangsu Financial Leasing
Performance |
Timeline |
Loctek Ergonomic Tec |
Jiangsu Financial Leasing |
Loctek Ergonomic and Jiangsu Financial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Loctek Ergonomic and Jiangsu Financial
The main advantage of trading using opposite Loctek Ergonomic and Jiangsu Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Jiangsu Financial 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 Jiangsu Financial will offset losses from the drop in Jiangsu Financial's long position.Loctek Ergonomic vs. Ming Yang Smart | Loctek Ergonomic vs. 159681 | Loctek Ergonomic vs. 159005 | Loctek Ergonomic vs. Yes Optoelectronics Co |
Jiangsu Financial vs. Ming Yang Smart | Jiangsu Financial vs. 159681 | Jiangsu Financial vs. 159005 | Jiangsu Financial 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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