Correlation Between Loctek Ergonomic and Trina Solar
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By analyzing existing cross correlation between Loctek Ergonomic Technology and Trina Solar Co, you can compare the effects of market volatilities on Loctek Ergonomic and Trina Solar 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 Trina Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Trina Solar.
Diversification Opportunities for Loctek Ergonomic and Trina Solar
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Loctek and Trina is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Trina Solar Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trina Solar 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 Trina Solar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trina Solar has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Trina Solar go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Trina Solar
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to generate 0.95 times more return on investment than Trina Solar. However, Loctek Ergonomic Technology is 1.05 times less risky than Trina Solar. It trades about 0.03 of its potential returns per unit of risk. Trina Solar Co is currently generating about -0.06 per unit of risk. If you would invest 1,216 in Loctek Ergonomic Technology on September 25, 2024 and sell it today you would earn a total of 355.00 from holding Loctek Ergonomic Technology or generate 29.19% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 99.79% |
Values | Daily Returns |
Loctek Ergonomic Technology vs. Trina Solar Co
Performance |
Timeline |
Loctek Ergonomic Tec |
Trina Solar |
Loctek Ergonomic and Trina Solar Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Loctek Ergonomic and Trina Solar
The main advantage of trading using opposite Loctek Ergonomic and Trina Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Trina Solar 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 Trina Solar will offset losses from the drop in Trina Solar's long position.Loctek Ergonomic vs. Ming Yang Smart | Loctek Ergonomic vs. 159681 | Loctek Ergonomic vs. 159005 | Loctek Ergonomic vs. Yes Optoelectronics Co |
Trina Solar vs. Ming Yang Smart | Trina Solar vs. 159681 | Trina Solar vs. 159005 | Trina Solar 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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