Correlation Between Shandong Sino and Leyard Optoelectronic
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By analyzing existing cross correlation between Shandong Sino Agri United and Leyard Optoelectronic, you can compare the effects of market volatilities on Shandong Sino 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 Shandong Sino with a short position of Leyard Optoelectronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Sino and Leyard Optoelectronic.
Diversification Opportunities for Shandong Sino and Leyard Optoelectronic
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shandong and Leyard is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Sino Agri United and Leyard Optoelectronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leyard Optoelectronic and Shandong Sino 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 Shandong Sino Agri United 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 Shandong Sino i.e., Shandong Sino and Leyard Optoelectronic go up and down completely randomly.
Pair Corralation between Shandong Sino and Leyard Optoelectronic
Assuming the 90 days trading horizon Shandong Sino Agri United is expected to generate 1.57 times more return on investment than Leyard Optoelectronic. However, Shandong Sino is 1.57 times more volatile than Leyard Optoelectronic. It trades about 0.33 of its potential returns per unit of risk. Leyard Optoelectronic is currently generating about 0.09 per unit of risk. If you would invest 1,388 in Shandong Sino Agri United on September 3, 2024 and sell it today you would earn a total of 409.00 from holding Shandong Sino Agri United or generate 29.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Sino Agri United vs. Leyard Optoelectronic
Performance |
| Timeline |
| Shandong Sino Agri |
| Leyard Optoelectronic |
Shandong Sino and Leyard Optoelectronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Sino and Leyard Optoelectronic
The main advantage of trading using opposite Shandong Sino and Leyard Optoelectronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Sino 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.| Shandong Sino vs. Jiangsu Jinling Sports | Shandong Sino vs. Hainan Mining Co | Shandong Sino vs. Fujian Oriental Silver | Shandong Sino vs. JCHX Mining Management |
| Leyard Optoelectronic vs. Agricultural Bank of | Leyard Optoelectronic vs. China Construction Bank | Leyard Optoelectronic vs. Postal Savings Bank | Leyard Optoelectronic vs. Bank of Communications |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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