Correlation Between Leyard Optoelectronic and Hainan Mining
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By analyzing existing cross correlation between Leyard Optoelectronic and Hainan Mining Co, you can compare the effects of market volatilities on Leyard Optoelectronic and Hainan 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 Hainan Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leyard Optoelectronic and Hainan Mining.
Diversification Opportunities for Leyard Optoelectronic and Hainan Mining
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Leyard and Hainan is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Leyard Optoelectronic and Hainan Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Mining 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 Hainan Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Mining has no effect on the direction of Leyard Optoelectronic i.e., Leyard Optoelectronic and Hainan Mining go up and down completely randomly.
Pair Corralation between Leyard Optoelectronic and Hainan Mining
Assuming the 90 days trading horizon Leyard Optoelectronic is expected to generate 1.31 times more return on investment than Hainan Mining. However, Leyard Optoelectronic is 1.31 times more volatile than Hainan Mining Co. It trades about 0.01 of its potential returns per unit of risk. Hainan Mining Co is currently generating about -0.01 per unit of risk. If you would invest 600.00 in Leyard Optoelectronic on October 16, 2024 and sell it today you would lose (22.00) from holding Leyard Optoelectronic or give up 3.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Leyard Optoelectronic vs. Hainan Mining Co
Performance |
| Timeline |
| Leyard Optoelectronic |
| Hainan Mining |
Leyard Optoelectronic and Hainan Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leyard Optoelectronic and Hainan Mining
The main advantage of trading using opposite Leyard Optoelectronic and Hainan Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leyard Optoelectronic position performs unexpectedly, Hainan 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 Hainan Mining will offset losses from the drop in Hainan Mining's long position.| Leyard Optoelectronic vs. Tianshan Aluminum Group | Leyard Optoelectronic vs. Zhejiang Yongjin Metal | Leyard Optoelectronic vs. Keda Clean Energy | Leyard Optoelectronic vs. Shaanxi Meineng Clean |
| Hainan Mining vs. Zhongfu Information | Hainan Mining vs. Leyard Optoelectronic | Hainan Mining vs. Hygon Information Technology | Hainan Mining vs. CITIC Guoan Information |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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