Correlation Between Leyard Optoelectronic and China Marine
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By analyzing existing cross correlation between Leyard Optoelectronic and China Marine Information, you can compare the effects of market volatilities on Leyard Optoelectronic and China Marine 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 Marine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leyard Optoelectronic and China Marine.
Diversification Opportunities for Leyard Optoelectronic and China Marine
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Leyard and China is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Leyard Optoelectronic and China Marine Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Marine Information 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 Marine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Marine Information has no effect on the direction of Leyard Optoelectronic i.e., Leyard Optoelectronic and China Marine go up and down completely randomly.
Pair Corralation between Leyard Optoelectronic and China Marine
Assuming the 90 days trading horizon Leyard Optoelectronic is expected to generate 1.39 times more return on investment than China Marine. However, Leyard Optoelectronic is 1.39 times more volatile than China Marine Information. It trades about 0.14 of its potential returns per unit of risk. China Marine Information is currently generating about 0.08 per unit of risk. If you would invest 406.00 in Leyard Optoelectronic on October 24, 2024 and sell it today you would earn a total of 251.00 from holding Leyard Optoelectronic or generate 61.82% 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. China Marine Information
Performance |
| Timeline |
| Leyard Optoelectronic |
| China Marine Information |
Leyard Optoelectronic and China Marine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leyard Optoelectronic and China Marine
The main advantage of trading using opposite Leyard Optoelectronic and China Marine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leyard Optoelectronic position performs unexpectedly, China Marine 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 Marine will offset losses from the drop in China Marine's long position.The idea behind Leyard Optoelectronic and China Marine Information pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| China Marine vs. Leyard Optoelectronic | China Marine vs. Shanghai Shibei Hi Tech | China Marine vs. Tianjin Hi Tech Development | China Marine vs. Jiangxi Hengda Hi Tech |
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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