Correlation Between DO Home and Leyard Optoelectronic
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By analyzing existing cross correlation between DO Home Collection and Leyard Optoelectronic, you can compare the effects of market volatilities on DO Home 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 DO Home with a short position of Leyard Optoelectronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of DO Home and Leyard Optoelectronic.
Diversification Opportunities for DO Home and Leyard Optoelectronic
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 002798 and Leyard is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding DO Home Collection and Leyard Optoelectronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leyard Optoelectronic and DO Home 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 DO Home Collection 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 DO Home i.e., DO Home and Leyard Optoelectronic go up and down completely randomly.
Pair Corralation between DO Home and Leyard Optoelectronic
Assuming the 90 days trading horizon DO Home Collection is expected to under-perform the Leyard Optoelectronic. But the stock apears to be less risky and, when comparing its historical volatility, DO Home Collection is 1.37 times less risky than Leyard Optoelectronic. The stock trades about -0.24 of its potential returns per unit of risk. The Leyard Optoelectronic is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 707.00 in Leyard Optoelectronic on October 12, 2024 and sell it today you would lose (102.00) from holding Leyard Optoelectronic or give up 14.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DO Home Collection vs. Leyard Optoelectronic
Performance |
| Timeline |
| DO Home Collection |
| Leyard Optoelectronic |
DO Home and Leyard Optoelectronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DO Home and Leyard Optoelectronic
The main advantage of trading using opposite DO Home and Leyard Optoelectronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DO Home 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.| DO Home vs. Chison Medical Technologies | DO Home vs. Tinavi Medical Technologies | DO Home vs. Chengdu B ray Media | DO Home vs. Threes Company Media |
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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