Correlation Between Guangdong Jinming and Leyard Optoelectronic
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By analyzing existing cross correlation between Guangdong Jinming Machinery and Leyard Optoelectronic, you can compare the effects of market volatilities on Guangdong Jinming 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 Guangdong Jinming with a short position of Leyard Optoelectronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jinming and Leyard Optoelectronic.
Diversification Opportunities for Guangdong Jinming and Leyard Optoelectronic
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Leyard is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jinming Machinery and Leyard Optoelectronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leyard Optoelectronic and Guangdong Jinming 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 Guangdong Jinming Machinery 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 Guangdong Jinming i.e., Guangdong Jinming and Leyard Optoelectronic go up and down completely randomly.
Pair Corralation between Guangdong Jinming and Leyard Optoelectronic
Assuming the 90 days trading horizon Guangdong Jinming Machinery is expected to generate 1.52 times more return on investment than Leyard Optoelectronic. However, Guangdong Jinming is 1.52 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 0.06 per unit of risk. If you would invest 525.00 in Guangdong Jinming Machinery on September 3, 2024 and sell it today you would earn a total of 170.00 from holding Guangdong Jinming Machinery or generate 32.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Jinming Machinery vs. Leyard Optoelectronic
Performance |
| Timeline |
| Guangdong Jinming |
| Leyard Optoelectronic |
Guangdong Jinming and Leyard Optoelectronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jinming and Leyard Optoelectronic
The main advantage of trading using opposite Guangdong Jinming and Leyard Optoelectronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jinming 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.| Guangdong Jinming vs. Cultural Investment Holdings | Guangdong Jinming vs. Gome Telecom Equipment | Guangdong Jinming vs. Bus Online Co | Guangdong Jinming vs. Holitech Technology Co |
| 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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