Correlation Between Leyard Optoelectronic and Jiahe Foods
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By analyzing existing cross correlation between Leyard Optoelectronic and Jiahe Foods Industry, you can compare the effects of market volatilities on Leyard Optoelectronic and Jiahe Foods 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 Jiahe Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leyard Optoelectronic and Jiahe Foods.
Diversification Opportunities for Leyard Optoelectronic and Jiahe Foods
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Leyard and Jiahe is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Leyard Optoelectronic and Jiahe Foods Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiahe Foods Industry 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 Jiahe Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiahe Foods Industry has no effect on the direction of Leyard Optoelectronic i.e., Leyard Optoelectronic and Jiahe Foods go up and down completely randomly.
Pair Corralation between Leyard Optoelectronic and Jiahe Foods
Assuming the 90 days trading horizon Leyard Optoelectronic is expected to generate 1.83 times more return on investment than Jiahe Foods. However, Leyard Optoelectronic is 1.83 times more volatile than Jiahe Foods Industry. It trades about 0.07 of its potential returns per unit of risk. Jiahe Foods Industry is currently generating about -0.15 per unit of risk. If you would invest 539.00 in Leyard Optoelectronic on October 30, 2024 and sell it today you would earn a total of 54.00 from holding Leyard Optoelectronic or generate 10.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Leyard Optoelectronic vs. Jiahe Foods Industry
Performance |
| Timeline |
| Leyard Optoelectronic |
| Jiahe Foods Industry |
Leyard Optoelectronic and Jiahe Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leyard Optoelectronic and Jiahe Foods
The main advantage of trading using opposite Leyard Optoelectronic and Jiahe Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leyard Optoelectronic position performs unexpectedly, Jiahe Foods 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 Jiahe Foods will offset losses from the drop in Jiahe Foods' long position.| Leyard Optoelectronic vs. Mango Excellent Media | Leyard Optoelectronic vs. Threes Company Media | Leyard Optoelectronic vs. Zhejiang JIULI Hi tech | Leyard Optoelectronic vs. Kuang Chi Technologies |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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