Correlation Between Zhejiang JIULI and Leyard Optoelectronic
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By analyzing existing cross correlation between Zhejiang JIULI Hi tech and Leyard Optoelectronic, you can compare the effects of market volatilities on Zhejiang JIULI 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 Zhejiang JIULI with a short position of Leyard Optoelectronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang JIULI and Leyard Optoelectronic.
Diversification Opportunities for Zhejiang JIULI and Leyard Optoelectronic
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Zhejiang and Leyard is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang JIULI Hi tech and Leyard Optoelectronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leyard Optoelectronic and Zhejiang JIULI 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 Zhejiang JIULI Hi tech 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 Zhejiang JIULI i.e., Zhejiang JIULI and Leyard Optoelectronic go up and down completely randomly.
Pair Corralation between Zhejiang JIULI and Leyard Optoelectronic
Assuming the 90 days trading horizon Zhejiang JIULI Hi tech is expected to generate 0.26 times more return on investment than Leyard Optoelectronic. However, Zhejiang JIULI Hi tech is 3.92 times less risky than Leyard Optoelectronic. It trades about 0.13 of its potential returns per unit of risk. Leyard Optoelectronic is currently generating about -0.18 per unit of risk. If you would invest 2,370 in Zhejiang JIULI Hi tech on October 22, 2024 and sell it today you would earn a total of 63.00 from holding Zhejiang JIULI Hi tech or generate 2.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang JIULI Hi tech vs. Leyard Optoelectronic
Performance |
| Timeline |
| Zhejiang JIULI Hi |
| Leyard Optoelectronic |
Zhejiang JIULI and Leyard Optoelectronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang JIULI and Leyard Optoelectronic
The main advantage of trading using opposite Zhejiang JIULI and Leyard Optoelectronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang JIULI 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.| Zhejiang JIULI vs. Ningbo Construction Co | Zhejiang JIULI vs. Hunan Tyen Machinery | Zhejiang JIULI vs. Bingo Software Co | Zhejiang JIULI vs. Hongrun Construction Group |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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