Correlation Between Leyard Optoelectronic and Western Metal
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By analyzing existing cross correlation between Leyard Optoelectronic and Western Metal Materials, you can compare the effects of market volatilities on Leyard Optoelectronic and Western Metal 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 Leyard Optoelectronic with a short position of Western Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leyard Optoelectronic and Western Metal.
Diversification Opportunities for Leyard Optoelectronic and Western Metal
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Leyard and Western is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Leyard Optoelectronic and Western Metal Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Metal Materials and Leyard Optoelectronic 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 Leyard Optoelectronic are associated (or correlated) with Western Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Metal Materials has no effect on the direction of Leyard Optoelectronic i.e., Leyard Optoelectronic and Western Metal go up and down completely randomly.
Pair Corralation between Leyard Optoelectronic and Western Metal
Assuming the 90 days trading horizon Leyard Optoelectronic is expected to generate 1.16 times more return on investment than Western Metal. However, Leyard Optoelectronic is 1.16 times more volatile than Western Metal Materials. It trades about 0.03 of its potential returns per unit of risk. Western Metal Materials is currently generating about 0.02 per unit of risk. If you would invest 642.00 in Leyard Optoelectronic on November 28, 2024 and sell it today you would earn a total of 123.00 from holding Leyard Optoelectronic or generate 19.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Leyard Optoelectronic vs. Western Metal Materials
Performance |
| Timeline |
| Leyard Optoelectronic |
| Western Metal Materials |
Leyard Optoelectronic and Western Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leyard Optoelectronic and Western Metal
The main advantage of trading using opposite Leyard Optoelectronic and Western Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leyard Optoelectronic position performs unexpectedly, Western Metal 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 Western Metal will offset losses from the drop in Western Metal's long position.| Leyard Optoelectronic vs. Ming Yang Smart | Leyard Optoelectronic vs. 159681 | Leyard Optoelectronic vs. 159005 | Leyard Optoelectronic vs. Loctek Ergonomic Technology |
| Western Metal vs. Soyea Technology Co | Western Metal vs. Camelot Electronics Technology | Western Metal vs. Jinlong Machinery Electronic | Western Metal vs. Epoxy Base Electronic |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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