Correlation Between Kuang Chi and Leyard Optoelectronic
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By analyzing existing cross correlation between Kuang Chi Technologies and Leyard Optoelectronic, you can compare the effects of market volatilities on Kuang Chi 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 Kuang Chi with a short position of Leyard Optoelectronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuang Chi and Leyard Optoelectronic.
Diversification Opportunities for Kuang Chi and Leyard Optoelectronic
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Kuang and Leyard is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Kuang Chi Technologies and Leyard Optoelectronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leyard Optoelectronic and Kuang Chi 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 Kuang Chi Technologies 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 Kuang Chi i.e., Kuang Chi and Leyard Optoelectronic go up and down completely randomly.
Pair Corralation between Kuang Chi and Leyard Optoelectronic
Assuming the 90 days trading horizon Kuang Chi Technologies is expected to generate 1.03 times more return on investment than Leyard Optoelectronic. However, Kuang Chi is 1.03 times more volatile than Leyard Optoelectronic. It trades about 0.07 of its potential returns per unit of risk. Leyard Optoelectronic is currently generating about 0.01 per unit of risk. If you would invest 1,839 in Kuang Chi Technologies on October 31, 2024 and sell it today you would earn a total of 2,226 from holding Kuang Chi Technologies or generate 121.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuang Chi Technologies vs. Leyard Optoelectronic
Performance |
| Timeline |
| Kuang Chi Technologies |
| Leyard Optoelectronic |
Kuang Chi and Leyard Optoelectronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuang Chi and Leyard Optoelectronic
The main advantage of trading using opposite Kuang Chi and Leyard Optoelectronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuang Chi 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.| Kuang Chi vs. Uxi Unicomp Technology | Kuang Chi vs. UCloud Technology Co | Kuang Chi vs. Guangzhou KingTeller Technology | Kuang Chi vs. Shaanxi Broadcast TV |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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