Correlation Between Leyard Optoelectronic and Chengtun Mining
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By analyzing existing cross correlation between Leyard Optoelectronic and Chengtun Mining Group, you can compare the effects of market volatilities on Leyard Optoelectronic and Chengtun Mining 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 Chengtun Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leyard Optoelectronic and Chengtun Mining.
Diversification Opportunities for Leyard Optoelectronic and Chengtun Mining
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Leyard and Chengtun is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Leyard Optoelectronic and Chengtun Mining Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengtun Mining Group 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 Chengtun Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengtun Mining Group has no effect on the direction of Leyard Optoelectronic i.e., Leyard Optoelectronic and Chengtun Mining go up and down completely randomly.
Pair Corralation between Leyard Optoelectronic and Chengtun Mining
Assuming the 90 days trading horizon Leyard Optoelectronic is expected to under-perform the Chengtun Mining. In addition to that, Leyard Optoelectronic is 3.46 times more volatile than Chengtun Mining Group. It trades about -0.19 of its total potential returns per unit of risk. Chengtun Mining Group is currently generating about 0.16 per unit of volatility. If you would invest 474.00 in Chengtun Mining Group on October 17, 2024 and sell it today you would earn a total of 27.00 from holding Chengtun Mining Group or generate 5.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Leyard Optoelectronic vs. Chengtun Mining Group
Performance |
| Timeline |
| Leyard Optoelectronic |
| Chengtun Mining Group |
Leyard Optoelectronic and Chengtun Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leyard Optoelectronic and Chengtun Mining
The main advantage of trading using opposite Leyard Optoelectronic and Chengtun Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leyard Optoelectronic position performs unexpectedly, Chengtun Mining 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 Chengtun Mining will offset losses from the drop in Chengtun Mining's long position.| Leyard Optoelectronic vs. Beijing Enlight Media | Leyard Optoelectronic vs. JiShi Media Co | Leyard Optoelectronic vs. Hengli Petrochemical Co | Leyard Optoelectronic vs. Yangmei Chemical Co |
| Chengtun Mining vs. Jinlong Machinery Electronic | Chengtun Mining vs. Fujian Anjoy Foods | Chengtun Mining vs. Eastroc Beverage Group | Chengtun Mining vs. Leyard Optoelectronic |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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