Correlation Between Leyard Optoelectronic and Shandong Sino
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By analyzing existing cross correlation between Leyard Optoelectronic and Shandong Sino Agri United, you can compare the effects of market volatilities on Leyard Optoelectronic and Shandong Sino 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 Shandong Sino. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leyard Optoelectronic and Shandong Sino.
Diversification Opportunities for Leyard Optoelectronic and Shandong Sino
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Leyard and Shandong is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Leyard Optoelectronic and Shandong Sino Agri United in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Sino Agri 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 Shandong Sino. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Sino Agri has no effect on the direction of Leyard Optoelectronic i.e., Leyard Optoelectronic and Shandong Sino go up and down completely randomly.
Pair Corralation between Leyard Optoelectronic and Shandong Sino
Assuming the 90 days trading horizon Leyard Optoelectronic is expected to generate 1.45 times less return on investment than Shandong Sino. In addition to that, Leyard Optoelectronic is 1.04 times more volatile than Shandong Sino Agri United. It trades about 0.03 of its total potential returns per unit of risk. Shandong Sino Agri United is currently generating about 0.05 per unit of volatility. If you would invest 1,536 in Shandong Sino Agri United on September 3, 2024 and sell it today you would earn a total of 261.00 from holding Shandong Sino Agri United or generate 16.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Leyard Optoelectronic vs. Shandong Sino Agri United
Performance |
| Timeline |
| Leyard Optoelectronic |
| Shandong Sino Agri |
Leyard Optoelectronic and Shandong Sino Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leyard Optoelectronic and Shandong Sino
The main advantage of trading using opposite Leyard Optoelectronic and Shandong Sino positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leyard Optoelectronic position performs unexpectedly, Shandong Sino 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 Shandong Sino will offset losses from the drop in Shandong Sino'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 |
| Shandong Sino vs. Jiangsu Jinling Sports | Shandong Sino vs. Hainan Mining Co | Shandong Sino vs. Fujian Oriental Silver | Shandong Sino vs. JCHX Mining Management |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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