Correlation Between Leyard Optoelectronic and Hefei Metalforming
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By analyzing existing cross correlation between Leyard Optoelectronic and Hefei Metalforming Mach, you can compare the effects of market volatilities on Leyard Optoelectronic and Hefei Metalforming 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 Hefei Metalforming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leyard Optoelectronic and Hefei Metalforming.
Diversification Opportunities for Leyard Optoelectronic and Hefei Metalforming
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Leyard and Hefei is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Leyard Optoelectronic and Hefei Metalforming Mach in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hefei Metalforming Mach 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 Hefei Metalforming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hefei Metalforming Mach has no effect on the direction of Leyard Optoelectronic i.e., Leyard Optoelectronic and Hefei Metalforming go up and down completely randomly.
Pair Corralation between Leyard Optoelectronic and Hefei Metalforming
Assuming the 90 days trading horizon Leyard Optoelectronic is expected to under-perform the Hefei Metalforming. In addition to that, Leyard Optoelectronic is 1.55 times more volatile than Hefei Metalforming Mach. It trades about -0.31 of its total potential returns per unit of risk. Hefei Metalforming Mach is currently generating about -0.2 per unit of volatility. If you would invest 780.00 in Hefei Metalforming Mach on October 16, 2024 and sell it today you would lose (104.00) from holding Hefei Metalforming Mach or give up 13.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Leyard Optoelectronic vs. Hefei Metalforming Mach
Performance |
| Timeline |
| Leyard Optoelectronic |
| Hefei Metalforming Mach |
Leyard Optoelectronic and Hefei Metalforming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leyard Optoelectronic and Hefei Metalforming
The main advantage of trading using opposite Leyard Optoelectronic and Hefei Metalforming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leyard Optoelectronic position performs unexpectedly, Hefei Metalforming 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 Hefei Metalforming will offset losses from the drop in Hefei Metalforming'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 |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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