Correlation Between Leyard Optoelectronic and Maccura Biotechnology
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By analyzing existing cross correlation between Leyard Optoelectronic and Maccura Biotechnology Co, you can compare the effects of market volatilities on Leyard Optoelectronic and Maccura Biotechnology 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 Maccura Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leyard Optoelectronic and Maccura Biotechnology.
Diversification Opportunities for Leyard Optoelectronic and Maccura Biotechnology
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Leyard and Maccura is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Leyard Optoelectronic and Maccura Biotechnology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maccura Biotechnology 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 Maccura Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maccura Biotechnology has no effect on the direction of Leyard Optoelectronic i.e., Leyard Optoelectronic and Maccura Biotechnology go up and down completely randomly.
Pair Corralation between Leyard Optoelectronic and Maccura Biotechnology
Assuming the 90 days trading horizon Leyard Optoelectronic is expected to generate 1.94 times more return on investment than Maccura Biotechnology. However, Leyard Optoelectronic is 1.94 times more volatile than Maccura Biotechnology Co. It trades about 0.33 of its potential returns per unit of risk. Maccura Biotechnology Co is currently generating about -0.13 per unit of risk. If you would invest 555.00 in Leyard Optoelectronic on September 13, 2024 and sell it today you would earn a total of 152.00 from holding Leyard Optoelectronic or generate 27.39% 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. Maccura Biotechnology Co
Performance |
| Timeline |
| Leyard Optoelectronic |
| Maccura Biotechnology |
Leyard Optoelectronic and Maccura Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leyard Optoelectronic and Maccura Biotechnology
The main advantage of trading using opposite Leyard Optoelectronic and Maccura Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leyard Optoelectronic position performs unexpectedly, Maccura Biotechnology 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 Maccura Biotechnology will offset losses from the drop in Maccura Biotechnology's long position.| Leyard Optoelectronic vs. Industrial and Commercial | Leyard Optoelectronic vs. Agricultural Bank of | Leyard Optoelectronic vs. China Construction Bank | Leyard Optoelectronic vs. Bank of China |
| Maccura Biotechnology vs. Guangzhou Restaurants Group | Maccura Biotechnology vs. Hunan Investment Group | Maccura Biotechnology vs. Changchun Faway Automobile | Maccura Biotechnology vs. CSSC Offshore Marine |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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