Correlation Between Jointo Energy and Leyard Optoelectronic
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By analyzing existing cross correlation between Jointo Energy Investment and Leyard Optoelectronic, you can compare the effects of market volatilities on Jointo Energy and Leyard Optoelectronic 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 Jointo Energy with a short position of Leyard Optoelectronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jointo Energy and Leyard Optoelectronic.
Diversification Opportunities for Jointo Energy and Leyard Optoelectronic
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jointo and Leyard is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Jointo Energy Investment and Leyard Optoelectronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leyard Optoelectronic and Jointo Energy 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 Jointo Energy Investment are associated (or correlated) with Leyard Optoelectronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leyard Optoelectronic has no effect on the direction of Jointo Energy i.e., Jointo Energy and Leyard Optoelectronic go up and down completely randomly.
Pair Corralation between Jointo Energy and Leyard Optoelectronic
Assuming the 90 days trading horizon Jointo Energy Investment is expected to generate 0.41 times more return on investment than Leyard Optoelectronic. However, Jointo Energy Investment is 2.42 times less risky than Leyard Optoelectronic. It trades about 0.08 of its potential returns per unit of risk. Leyard Optoelectronic is currently generating about 0.01 per unit of risk. If you would invest 514.00 in Jointo Energy Investment on November 4, 2024 and sell it today you would earn a total of 12.00 from holding Jointo Energy Investment or generate 2.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jointo Energy Investment vs. Leyard Optoelectronic
Performance |
| Timeline |
| Jointo Energy Investment |
| Leyard Optoelectronic |
Jointo Energy and Leyard Optoelectronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jointo Energy and Leyard Optoelectronic
The main advantage of trading using opposite Jointo Energy and Leyard Optoelectronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jointo Energy position performs unexpectedly, Leyard Optoelectronic 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 Leyard Optoelectronic will offset losses from the drop in Leyard Optoelectronic's long position.| Jointo Energy vs. CICT Mobile Communication | Jointo Energy vs. Xinxiang Chemical Fiber | Jointo Energy vs. Maoming Petro Chemical Shihua | Jointo Energy vs. Daoming OpticsChemical Co |
| Leyard Optoelectronic vs. HanS Laser Tech | Leyard Optoelectronic vs. Linktel Technologies Co | Leyard Optoelectronic vs. Guilin Seamild Foods | Leyard Optoelectronic vs. Gan Yuan Foods |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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