Correlation Between Hangzhou Weiguang and Leyard Optoelectronic
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By analyzing existing cross correlation between Hangzhou Weiguang Electronic and Leyard Optoelectronic, you can compare the effects of market volatilities on Hangzhou Weiguang 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 Hangzhou Weiguang with a short position of Leyard Optoelectronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Weiguang and Leyard Optoelectronic.
Diversification Opportunities for Hangzhou Weiguang and Leyard Optoelectronic
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hangzhou and Leyard is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Weiguang Electronic and Leyard Optoelectronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leyard Optoelectronic and Hangzhou Weiguang 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 Hangzhou Weiguang Electronic 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 Hangzhou Weiguang i.e., Hangzhou Weiguang and Leyard Optoelectronic go up and down completely randomly.
Pair Corralation between Hangzhou Weiguang and Leyard Optoelectronic
Assuming the 90 days trading horizon Hangzhou Weiguang Electronic is expected to generate 0.62 times more return on investment than Leyard Optoelectronic. However, Hangzhou Weiguang Electronic is 1.61 times less risky than Leyard Optoelectronic. It trades about 0.07 of its potential returns per unit of risk. Leyard Optoelectronic is currently generating about -0.18 per unit of risk. If you would invest 2,435 in Hangzhou Weiguang Electronic on October 22, 2024 and sell it today you would earn a total of 71.00 from holding Hangzhou Weiguang Electronic or generate 2.92% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 95.24% |
Values | Daily Returns |
Hangzhou Weiguang Electronic vs. Leyard Optoelectronic
Performance |
Timeline |
Hangzhou Weiguang |
Leyard Optoelectronic |
Hangzhou Weiguang and Leyard Optoelectronic Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hangzhou Weiguang and Leyard Optoelectronic
The main advantage of trading using opposite Hangzhou Weiguang and Leyard Optoelectronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Weiguang 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.Hangzhou Weiguang vs. HeNan Splendor Science | Hangzhou Weiguang vs. Tongding Interconnection Information | Hangzhou Weiguang vs. Nanjing Canatal Data | Hangzhou Weiguang vs. Unisplendour Corp |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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