Correlation Between Shandong Sanyuan and Loctek Ergonomic
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By analyzing existing cross correlation between Shandong Sanyuan Biotechnology and Loctek Ergonomic Technology, you can compare the effects of market volatilities on Shandong Sanyuan and Loctek Ergonomic 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 Shandong Sanyuan with a short position of Loctek Ergonomic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Sanyuan and Loctek Ergonomic.
Diversification Opportunities for Shandong Sanyuan and Loctek Ergonomic
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shandong and Loctek is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Sanyuan Biotechnology and Loctek Ergonomic Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loctek Ergonomic Tec and Shandong Sanyuan 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 Shandong Sanyuan Biotechnology are associated (or correlated) with Loctek Ergonomic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loctek Ergonomic Tec has no effect on the direction of Shandong Sanyuan i.e., Shandong Sanyuan and Loctek Ergonomic go up and down completely randomly.
Pair Corralation between Shandong Sanyuan and Loctek Ergonomic
Assuming the 90 days trading horizon Shandong Sanyuan is expected to generate 3.5 times less return on investment than Loctek Ergonomic. But when comparing it to its historical volatility, Shandong Sanyuan Biotechnology is 1.37 times less risky than Loctek Ergonomic. It trades about 0.01 of its potential returns per unit of risk. Loctek Ergonomic Technology is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,515 in Loctek Ergonomic Technology on September 12, 2024 and sell it today you would earn a total of 186.00 from holding Loctek Ergonomic Technology or generate 12.28% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Shandong Sanyuan Biotechnology vs. Loctek Ergonomic Technology
Performance |
Timeline |
Shandong Sanyuan Bio |
Loctek Ergonomic Tec |
Shandong Sanyuan and Loctek Ergonomic Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shandong Sanyuan and Loctek Ergonomic
The main advantage of trading using opposite Shandong Sanyuan and Loctek Ergonomic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Sanyuan position performs unexpectedly, Loctek Ergonomic 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 Loctek Ergonomic will offset losses from the drop in Loctek Ergonomic's long position.Shandong Sanyuan vs. China Petroleum Chemical | Shandong Sanyuan vs. PetroChina Co Ltd | Shandong Sanyuan vs. China State Construction | Shandong Sanyuan vs. China Railway Group |
Loctek Ergonomic vs. Uxi Unicomp Technology | Loctek Ergonomic vs. Maxvision Technology Corp | Loctek Ergonomic vs. Olympic Circuit Technology | Loctek Ergonomic vs. Shandong Sanyuan Biotechnology |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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