Correlation Between Leyard Optoelectronic and Nantong Haixing
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By analyzing existing cross correlation between Leyard Optoelectronic and Nantong Haixing Electronics, you can compare the effects of market volatilities on Leyard Optoelectronic and Nantong Haixing 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 Nantong Haixing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leyard Optoelectronic and Nantong Haixing.
Diversification Opportunities for Leyard Optoelectronic and Nantong Haixing
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Leyard and Nantong is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Leyard Optoelectronic and Nantong Haixing Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nantong Haixing Elec 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 Nantong Haixing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nantong Haixing Elec has no effect on the direction of Leyard Optoelectronic i.e., Leyard Optoelectronic and Nantong Haixing go up and down completely randomly.
Pair Corralation between Leyard Optoelectronic and Nantong Haixing
Assuming the 90 days trading horizon Leyard Optoelectronic is expected to generate 2.23 times less return on investment than Nantong Haixing. In addition to that, Leyard Optoelectronic is 1.48 times more volatile than Nantong Haixing Electronics. It trades about 0.03 of its total potential returns per unit of risk. Nantong Haixing Electronics is currently generating about 0.09 per unit of volatility. If you would invest 1,254 in Nantong Haixing Electronics on August 30, 2024 and sell it today you would earn a total of 106.00 from holding Nantong Haixing Electronics or generate 8.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Leyard Optoelectronic vs. Nantong Haixing Electronics
Performance |
| Timeline |
| Leyard Optoelectronic |
| Nantong Haixing Elec |
Leyard Optoelectronic and Nantong Haixing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leyard Optoelectronic and Nantong Haixing
The main advantage of trading using opposite Leyard Optoelectronic and Nantong Haixing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leyard Optoelectronic position performs unexpectedly, Nantong Haixing 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 Nantong Haixing will offset losses from the drop in Nantong Haixing's long position.| Leyard Optoelectronic vs. Sichuan Yahua Industrial | Leyard Optoelectronic vs. Shenzhen Topway Video | Leyard Optoelectronic vs. Zhejiang Kingland Pipeline | Leyard Optoelectronic vs. Yunnan Xiyi Industrial |
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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