Correlation Between Leyard Optoelectronic and Chahua Modern
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By analyzing existing cross correlation between Leyard Optoelectronic and Chahua Modern Housewares, you can compare the effects of market volatilities on Leyard Optoelectronic and Chahua Modern 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 Chahua Modern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leyard Optoelectronic and Chahua Modern.
Diversification Opportunities for Leyard Optoelectronic and Chahua Modern
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Leyard and Chahua is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Leyard Optoelectronic and Chahua Modern Housewares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chahua Modern Housewares 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 Chahua Modern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chahua Modern Housewares has no effect on the direction of Leyard Optoelectronic i.e., Leyard Optoelectronic and Chahua Modern go up and down completely randomly.
Pair Corralation between Leyard Optoelectronic and Chahua Modern
Assuming the 90 days trading horizon Leyard Optoelectronic is expected to generate 0.68 times more return on investment than Chahua Modern. However, Leyard Optoelectronic is 1.48 times less risky than Chahua Modern. It trades about 0.2 of its potential returns per unit of risk. Chahua Modern Housewares is currently generating about 0.01 per unit of risk. If you would invest 569.00 in Leyard Optoelectronic on September 12, 2024 and sell it today you would earn a total of 71.00 from holding Leyard Optoelectronic or generate 12.48% 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. Chahua Modern Housewares
Performance |
| Timeline |
| Leyard Optoelectronic |
| Chahua Modern Housewares |
Leyard Optoelectronic and Chahua Modern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leyard Optoelectronic and Chahua Modern
The main advantage of trading using opposite Leyard Optoelectronic and Chahua Modern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leyard Optoelectronic position performs unexpectedly, Chahua Modern 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 Chahua Modern will offset losses from the drop in Chahua Modern's long position.| Leyard Optoelectronic vs. Gansu Jiu Steel | Leyard Optoelectronic vs. Shandong Mining Machinery | Leyard Optoelectronic vs. Aba Chemicals Corp | Leyard Optoelectronic vs. BlueFocus Communication Group |
| Chahua Modern vs. Lutian Machinery Co | Chahua Modern vs. PetroChina Co Ltd | Chahua Modern vs. Bank of China | Chahua Modern vs. Gansu Jiu Steel |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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