Correlation Between Leyard Optoelectronic and Gansu Yasheng
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By analyzing existing cross correlation between Leyard Optoelectronic and Gansu Yasheng Industrial, you can compare the effects of market volatilities on Leyard Optoelectronic and Gansu Yasheng 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 Gansu Yasheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leyard Optoelectronic and Gansu Yasheng.
Diversification Opportunities for Leyard Optoelectronic and Gansu Yasheng
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Leyard and Gansu is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Leyard Optoelectronic and Gansu Yasheng Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Yasheng Industrial 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 Gansu Yasheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Yasheng Industrial has no effect on the direction of Leyard Optoelectronic i.e., Leyard Optoelectronic and Gansu Yasheng go up and down completely randomly.
Pair Corralation between Leyard Optoelectronic and Gansu Yasheng
Assuming the 90 days trading horizon Leyard Optoelectronic is expected to generate 3.05 times more return on investment than Gansu Yasheng. However, Leyard Optoelectronic is 3.05 times more volatile than Gansu Yasheng Industrial. It trades about 0.43 of its potential returns per unit of risk. Gansu Yasheng Industrial is currently generating about 0.02 per unit of risk. If you would invest 593.00 in Leyard Optoelectronic on November 28, 2024 and sell it today you would earn a total of 172.00 from holding Leyard Optoelectronic or generate 29.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Leyard Optoelectronic vs. Gansu Yasheng Industrial
Performance |
| Timeline |
| Leyard Optoelectronic |
| Gansu Yasheng Industrial |
Leyard Optoelectronic and Gansu Yasheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leyard Optoelectronic and Gansu Yasheng
The main advantage of trading using opposite Leyard Optoelectronic and Gansu Yasheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leyard Optoelectronic position performs unexpectedly, Gansu Yasheng 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 Gansu Yasheng will offset losses from the drop in Gansu Yasheng'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 Global Correlations module to find global opportunities by holding instruments from different markets.
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