Correlation Between Leyard Optoelectronic and Ningbo Jianan
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By analyzing existing cross correlation between Leyard Optoelectronic and Ningbo Jianan Electronics, you can compare the effects of market volatilities on Leyard Optoelectronic and Ningbo Jianan 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 Ningbo Jianan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leyard Optoelectronic and Ningbo Jianan.
Diversification Opportunities for Leyard Optoelectronic and Ningbo Jianan
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Leyard and Ningbo is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Leyard Optoelectronic and Ningbo Jianan Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Jianan Electronics 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 Ningbo Jianan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Jianan Electronics has no effect on the direction of Leyard Optoelectronic i.e., Leyard Optoelectronic and Ningbo Jianan go up and down completely randomly.
Pair Corralation between Leyard Optoelectronic and Ningbo Jianan
Assuming the 90 days trading horizon Leyard Optoelectronic is expected to generate 2.19 times less return on investment than Ningbo Jianan. But when comparing it to its historical volatility, Leyard Optoelectronic is 1.33 times less risky than Ningbo Jianan. It trades about 0.02 of its potential returns per unit of risk. Ningbo Jianan Electronics is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,648 in Ningbo Jianan Electronics on November 28, 2024 and sell it today you would earn a total of 654.00 from holding Ningbo Jianan Electronics or generate 39.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Leyard Optoelectronic vs. Ningbo Jianan Electronics
Performance |
| Timeline |
| Leyard Optoelectronic |
| Ningbo Jianan Electronics |
Leyard Optoelectronic and Ningbo Jianan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leyard Optoelectronic and Ningbo Jianan
The main advantage of trading using opposite Leyard Optoelectronic and Ningbo Jianan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leyard Optoelectronic position performs unexpectedly, Ningbo Jianan 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 Ningbo Jianan will offset losses from the drop in Ningbo Jianan's long position.| Leyard Optoelectronic vs. Ming Yang Smart | Leyard Optoelectronic vs. 159681 | Leyard Optoelectronic vs. 159005 | Leyard Optoelectronic vs. Loctek Ergonomic Technology |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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