Correlation Between Leyard Optoelectronic and China Petroleum
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By analyzing existing cross correlation between Leyard Optoelectronic and China Petroleum Chemical, you can compare the effects of market volatilities on Leyard Optoelectronic and China Petroleum 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 China Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leyard Optoelectronic and China Petroleum.
Diversification Opportunities for Leyard Optoelectronic and China Petroleum
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Leyard and China is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Leyard Optoelectronic and China Petroleum Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Petroleum Chemical 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 China Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Petroleum Chemical has no effect on the direction of Leyard Optoelectronic i.e., Leyard Optoelectronic and China Petroleum go up and down completely randomly.
Pair Corralation between Leyard Optoelectronic and China Petroleum
Assuming the 90 days trading horizon Leyard Optoelectronic is expected to under-perform the China Petroleum. In addition to that, Leyard Optoelectronic is 3.35 times more volatile than China Petroleum Chemical. It trades about -0.21 of its total potential returns per unit of risk. China Petroleum Chemical is currently generating about -0.13 per unit of volatility. If you would invest 646.00 in China Petroleum Chemical on October 20, 2024 and sell it today you would lose (24.00) from holding China Petroleum Chemical or give up 3.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Leyard Optoelectronic vs. China Petroleum Chemical
Performance |
| Timeline |
| Leyard Optoelectronic |
| China Petroleum Chemical |
Leyard Optoelectronic and China Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leyard Optoelectronic and China Petroleum
The main advantage of trading using opposite Leyard Optoelectronic and China Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leyard Optoelectronic position performs unexpectedly, China Petroleum 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 China Petroleum will offset losses from the drop in China Petroleum's long position.| Leyard Optoelectronic vs. Shenwu Energy Saving | Leyard Optoelectronic vs. Ningbo Tech Bank Co | Leyard Optoelectronic vs. HeNan Splendor Science | Leyard Optoelectronic vs. Xinya Electronic Co |
| China Petroleum vs. Eyebright Medical Technology | China Petroleum vs. Do Fluoride Chemicals Co | China Petroleum vs. Leyard Optoelectronic | China Petroleum vs. Jiangyin Jianghua Microelectronics |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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