Correlation Between Leyard Optoelectronic and Guosheng Financial
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By analyzing existing cross correlation between Leyard Optoelectronic and Guosheng Financial Holding, you can compare the effects of market volatilities on Leyard Optoelectronic and Guosheng Financial 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 Guosheng Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leyard Optoelectronic and Guosheng Financial.
Diversification Opportunities for Leyard Optoelectronic and Guosheng Financial
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Leyard and Guosheng is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Leyard Optoelectronic and Guosheng Financial Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guosheng Financial 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 Guosheng Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guosheng Financial has no effect on the direction of Leyard Optoelectronic i.e., Leyard Optoelectronic and Guosheng Financial go up and down completely randomly.
Pair Corralation between Leyard Optoelectronic and Guosheng Financial
Assuming the 90 days trading horizon Leyard Optoelectronic is expected to generate 1.76 times less return on investment than Guosheng Financial. But when comparing it to its historical volatility, Leyard Optoelectronic is 1.03 times less risky than Guosheng Financial. It trades about 0.05 of its potential returns per unit of risk. Guosheng Financial Holding is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,005 in Guosheng Financial Holding on September 14, 2024 and sell it today you would earn a total of 735.00 from holding Guosheng Financial Holding or generate 73.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.62% |
| Values | Daily Returns |
Leyard Optoelectronic vs. Guosheng Financial Holding
Performance |
| Timeline |
| Leyard Optoelectronic |
| Guosheng Financial |
Leyard Optoelectronic and Guosheng Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leyard Optoelectronic and Guosheng Financial
The main advantage of trading using opposite Leyard Optoelectronic and Guosheng Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leyard Optoelectronic position performs unexpectedly, Guosheng Financial 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 Guosheng Financial will offset losses from the drop in Guosheng Financial's long position.| Leyard Optoelectronic vs. Metro Investment Development | Leyard Optoelectronic vs. Ningxia Younglight Chemicals | Leyard Optoelectronic vs. Dymatic Chemicals | Leyard Optoelectronic vs. Nuode Investment Co |
| Guosheng Financial vs. Leyard Optoelectronic | Guosheng Financial vs. Juneyao Airlines | Guosheng Financial vs. Xinya Electronic Co | Guosheng Financial 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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