Correlation Between Loctek Ergonomic and Youyou Foods
Specify exactly 2 symbols:
By analyzing existing cross correlation between Loctek Ergonomic Technology and Youyou Foods Co, you can compare the effects of market volatilities on Loctek Ergonomic and Youyou Foods 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 Youyou Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loctek Ergonomic and Youyou Foods.
Diversification Opportunities for Loctek Ergonomic and Youyou Foods
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Loctek and Youyou is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Loctek Ergonomic Technology and Youyou Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Youyou Foods 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 Youyou Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Youyou Foods has no effect on the direction of Loctek Ergonomic i.e., Loctek Ergonomic and Youyou Foods go up and down completely randomly.
Pair Corralation between Loctek Ergonomic and Youyou Foods
Assuming the 90 days trading horizon Loctek Ergonomic Technology is expected to under-perform the Youyou Foods. But the stock apears to be less risky and, when comparing its historical volatility, Loctek Ergonomic Technology is 1.23 times less risky than Youyou Foods. The stock trades about -0.16 of its potential returns per unit of risk. The Youyou Foods Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,028 in Youyou Foods Co on September 25, 2024 and sell it today you would earn a total of 0.00 from holding Youyou Foods Co or generate 0.0% 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. Youyou Foods Co
Performance |
Timeline |
Loctek Ergonomic Tec |
Youyou Foods |
Loctek Ergonomic and Youyou Foods Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Loctek Ergonomic and Youyou Foods
The main advantage of trading using opposite Loctek Ergonomic and Youyou Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loctek Ergonomic position performs unexpectedly, Youyou Foods 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 Youyou Foods will offset losses from the drop in Youyou Foods' long position.Loctek Ergonomic vs. Ming Yang Smart | Loctek Ergonomic vs. 159681 | Loctek Ergonomic vs. 159005 | Loctek Ergonomic vs. Yes Optoelectronics Co |
Youyou Foods vs. Ming Yang Smart | Youyou Foods vs. 159681 | Youyou Foods vs. 159005 | Youyou Foods 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
FinTech Suite Use AI to screen and filter profitable investment opportunities |