Correlation Between Chengdu Spaceon and Leyard Optoelectronic
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By analyzing existing cross correlation between Chengdu Spaceon Electronics and Leyard Optoelectronic, you can compare the effects of market volatilities on Chengdu Spaceon 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 Chengdu Spaceon with a short position of Leyard Optoelectronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Spaceon and Leyard Optoelectronic.
Diversification Opportunities for Chengdu Spaceon and Leyard Optoelectronic
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Chengdu and Leyard is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Spaceon Electronics and Leyard Optoelectronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leyard Optoelectronic and Chengdu Spaceon 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 Chengdu Spaceon Electronics 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 Chengdu Spaceon i.e., Chengdu Spaceon and Leyard Optoelectronic go up and down completely randomly.
Pair Corralation between Chengdu Spaceon and Leyard Optoelectronic
Assuming the 90 days trading horizon Chengdu Spaceon Electronics is expected to under-perform the Leyard Optoelectronic. But the stock apears to be less risky and, when comparing its historical volatility, Chengdu Spaceon Electronics is 2.66 times less risky than Leyard Optoelectronic. The stock trades about -0.04 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 539.00 in Leyard Optoelectronic on October 30, 2024 and sell it today you would earn a total of 54.00 from holding Leyard Optoelectronic or generate 10.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Spaceon Electronics vs. Leyard Optoelectronic
Performance |
| Timeline |
| Chengdu Spaceon Elec |
| Leyard Optoelectronic |
Chengdu Spaceon and Leyard Optoelectronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Spaceon and Leyard Optoelectronic
The main advantage of trading using opposite Chengdu Spaceon and Leyard Optoelectronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Spaceon 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.| Chengdu Spaceon vs. Hubei Xingfa Chemicals | Chengdu Spaceon vs. Yingde Greatchem Chemicals | Chengdu Spaceon vs. Jiujiang Shanshui Technology | Chengdu Spaceon vs. Linewell Software Co |
| Leyard Optoelectronic vs. Mango Excellent Media | Leyard Optoelectronic vs. Threes Company Media | Leyard Optoelectronic vs. Zhejiang JIULI Hi tech | Leyard Optoelectronic vs. Kuang Chi Technologies |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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