Correlation Between Leyard Optoelectronic and Guangdong Marubi
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By analyzing existing cross correlation between Leyard Optoelectronic and Guangdong Marubi Biotechnology, you can compare the effects of market volatilities on Leyard Optoelectronic and Guangdong Marubi 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 Guangdong Marubi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leyard Optoelectronic and Guangdong Marubi.
Diversification Opportunities for Leyard Optoelectronic and Guangdong Marubi
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Leyard and Guangdong is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Leyard Optoelectronic and Guangdong Marubi Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Marubi Bio 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 Guangdong Marubi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Marubi Bio has no effect on the direction of Leyard Optoelectronic i.e., Leyard Optoelectronic and Guangdong Marubi go up and down completely randomly.
Pair Corralation between Leyard Optoelectronic and Guangdong Marubi
Assuming the 90 days trading horizon Leyard Optoelectronic is expected to generate 1.15 times more return on investment than Guangdong Marubi. However, Leyard Optoelectronic is 1.15 times more volatile than Guangdong Marubi Biotechnology. It trades about 0.33 of its potential returns per unit of risk. Guangdong Marubi Biotechnology is currently generating about 0.07 per unit of risk. If you would invest 555.00 in Leyard Optoelectronic on September 13, 2024 and sell it today you would earn a total of 152.00 from holding Leyard Optoelectronic or generate 27.39% 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. Guangdong Marubi Biotechnology
Performance |
| Timeline |
| Leyard Optoelectronic |
| Guangdong Marubi Bio |
Leyard Optoelectronic and Guangdong Marubi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leyard Optoelectronic and Guangdong Marubi
The main advantage of trading using opposite Leyard Optoelectronic and Guangdong Marubi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leyard Optoelectronic position performs unexpectedly, Guangdong Marubi 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 Guangdong Marubi will offset losses from the drop in Guangdong Marubi's long position.| Leyard Optoelectronic vs. Industrial and Commercial | Leyard Optoelectronic vs. Agricultural Bank of | Leyard Optoelectronic vs. China Construction Bank | Leyard Optoelectronic vs. Bank of China |
| Guangdong Marubi vs. Tongling Nonferrous Metals | Guangdong Marubi vs. Sino Platinum Metals Co | Guangdong Marubi vs. CITIC Metal Co | Guangdong Marubi vs. Zhongshan Public Utilities |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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