Correlation Between Leyard Optoelectronic and Beijing Kingsoft
Specify exactly 2 symbols:
By analyzing existing cross correlation between Leyard Optoelectronic and Beijing Kingsoft Office, you can compare the effects of market volatilities on Leyard Optoelectronic and Beijing Kingsoft 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 Beijing Kingsoft. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leyard Optoelectronic and Beijing Kingsoft.
Diversification Opportunities for Leyard Optoelectronic and Beijing Kingsoft
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Leyard and Beijing is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Leyard Optoelectronic and Beijing Kingsoft Office in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Kingsoft Office 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 Beijing Kingsoft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Kingsoft Office has no effect on the direction of Leyard Optoelectronic i.e., Leyard Optoelectronic and Beijing Kingsoft go up and down completely randomly.
Pair Corralation between Leyard Optoelectronic and Beijing Kingsoft
Assuming the 90 days trading horizon Leyard Optoelectronic is expected to generate 2.92 times more return on investment than Beijing Kingsoft. However, Leyard Optoelectronic is 2.92 times more volatile than Beijing Kingsoft Office. It trades about -0.07 of its potential returns per unit of risk. Beijing Kingsoft Office is currently generating about -0.46 per unit of risk. If you would invest 707.00 in Leyard Optoelectronic on October 12, 2024 and sell it today you would lose (102.00) from holding Leyard Optoelectronic or give up 14.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Leyard Optoelectronic vs. Beijing Kingsoft Office
Performance |
| Timeline |
| Leyard Optoelectronic |
| Beijing Kingsoft Office |
Leyard Optoelectronic and Beijing Kingsoft Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leyard Optoelectronic and Beijing Kingsoft
The main advantage of trading using opposite Leyard Optoelectronic and Beijing Kingsoft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leyard Optoelectronic position performs unexpectedly, Beijing Kingsoft 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 Beijing Kingsoft will offset losses from the drop in Beijing Kingsoft's long position.The idea behind Leyard Optoelectronic and Beijing Kingsoft Office pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Beijing Kingsoft vs. Eastroc Beverage Group | Beijing Kingsoft vs. Great Sun Foods Co | Beijing Kingsoft vs. Panda Dairy Corp | Beijing Kingsoft vs. JuneYao Dairy Co |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |