Correlation Between Ningbo Tech and Leyard Optoelectronic
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By analyzing existing cross correlation between Ningbo Tech Bank Co and Leyard Optoelectronic, you can compare the effects of market volatilities on Ningbo Tech 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 Ningbo Tech with a short position of Leyard Optoelectronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Tech and Leyard Optoelectronic.
Diversification Opportunities for Ningbo Tech and Leyard Optoelectronic
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ningbo and Leyard is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Tech Bank Co and Leyard Optoelectronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leyard Optoelectronic and Ningbo Tech 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 Ningbo Tech Bank Co 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 Ningbo Tech i.e., Ningbo Tech and Leyard Optoelectronic go up and down completely randomly.
Pair Corralation between Ningbo Tech and Leyard Optoelectronic
Assuming the 90 days trading horizon Ningbo Tech is expected to generate 1.91 times less return on investment than Leyard Optoelectronic. But when comparing it to its historical volatility, Ningbo Tech Bank Co is 1.86 times less risky than Leyard Optoelectronic. It trades about 0.09 of its potential returns per unit of risk. Leyard Optoelectronic is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 425.00 in Leyard Optoelectronic on November 2, 2024 and sell it today you would earn a total of 168.00 from holding Leyard Optoelectronic or generate 39.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Tech Bank Co vs. Leyard Optoelectronic
Performance |
| Timeline |
| Ningbo Tech Bank |
| Leyard Optoelectronic |
Ningbo Tech and Leyard Optoelectronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Tech and Leyard Optoelectronic
The main advantage of trading using opposite Ningbo Tech and Leyard Optoelectronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Tech 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.| Ningbo Tech vs. Shanghai Yaoji Playing | Ningbo Tech vs. China Aluminum International | Ningbo Tech vs. Tongling Nonferrous Metals | Ningbo Tech vs. Sino Platinum Metals Co |
| Leyard Optoelectronic vs. Chengdu Kanghua Biological | Leyard Optoelectronic vs. Suzhou Novoprotein Scientific | Leyard Optoelectronic vs. Aluminum Corp of | Leyard Optoelectronic vs. COL Digital Publishing |
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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