Correlation Between Leyard Optoelectronic and Xizi Clean
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By analyzing existing cross correlation between Leyard Optoelectronic and Xizi Clean Energy, you can compare the effects of market volatilities on Leyard Optoelectronic and Xizi Clean 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 Xizi Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leyard Optoelectronic and Xizi Clean.
Diversification Opportunities for Leyard Optoelectronic and Xizi Clean
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Leyard and Xizi is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Leyard Optoelectronic and Xizi Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xizi Clean Energy 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 Xizi Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xizi Clean Energy has no effect on the direction of Leyard Optoelectronic i.e., Leyard Optoelectronic and Xizi Clean go up and down completely randomly.
Pair Corralation between Leyard Optoelectronic and Xizi Clean
Assuming the 90 days trading horizon Leyard Optoelectronic is expected to generate 1.36 times more return on investment than Xizi Clean. However, Leyard Optoelectronic is 1.36 times more volatile than Xizi Clean Energy. It trades about 0.12 of its potential returns per unit of risk. Xizi Clean Energy is currently generating about 0.13 per unit of risk. If you would invest 425.00 in Leyard Optoelectronic on September 3, 2024 and sell it today you would earn a total of 114.00 from holding Leyard Optoelectronic or generate 26.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Leyard Optoelectronic vs. Xizi Clean Energy
Performance |
| Timeline |
| Leyard Optoelectronic |
| Xizi Clean Energy |
Leyard Optoelectronic and Xizi Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leyard Optoelectronic and Xizi Clean
The main advantage of trading using opposite Leyard Optoelectronic and Xizi Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leyard Optoelectronic position performs unexpectedly, Xizi Clean 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 Xizi Clean will offset losses from the drop in Xizi Clean's long position.| Leyard Optoelectronic vs. Agricultural Bank of | Leyard Optoelectronic vs. China Construction Bank | Leyard Optoelectronic vs. Postal Savings Bank | Leyard Optoelectronic vs. Bank of Communications |
| Xizi Clean vs. Cultural Investment Holdings | Xizi Clean vs. Gome Telecom Equipment | Xizi Clean vs. Bus Online Co | Xizi Clean vs. Holitech Technology Co |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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