Correlation Between Ningbo MedicalSystem and Leyard Optoelectronic
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By analyzing existing cross correlation between Ningbo MedicalSystem Biotechnology and Leyard Optoelectronic, you can compare the effects of market volatilities on Ningbo MedicalSystem and Leyard Optoelectronic 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 Ningbo MedicalSystem with a short position of Leyard Optoelectronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo MedicalSystem and Leyard Optoelectronic.
Diversification Opportunities for Ningbo MedicalSystem and Leyard Optoelectronic
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ningbo and Leyard is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo MedicalSystem Biotechno and Leyard Optoelectronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leyard Optoelectronic and Ningbo MedicalSystem 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 Ningbo MedicalSystem Biotechnology are associated (or correlated) with Leyard Optoelectronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leyard Optoelectronic has no effect on the direction of Ningbo MedicalSystem i.e., Ningbo MedicalSystem and Leyard Optoelectronic go up and down completely randomly.
Pair Corralation between Ningbo MedicalSystem and Leyard Optoelectronic
Assuming the 90 days trading horizon Ningbo MedicalSystem Biotechnology is expected to generate 0.89 times more return on investment than Leyard Optoelectronic. However, Ningbo MedicalSystem Biotechnology is 1.12 times less risky than Leyard Optoelectronic. It trades about 0.07 of its potential returns per unit of risk. Leyard Optoelectronic is currently generating about 0.03 per unit of risk. If you would invest 919.00 in Ningbo MedicalSystem Biotechnology on September 3, 2024 and sell it today you would earn a total of 242.00 from holding Ningbo MedicalSystem Biotechnology or generate 26.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo MedicalSystem Biotechno vs. Leyard Optoelectronic
Performance |
| Timeline |
| Ningbo MedicalSystem |
| Leyard Optoelectronic |
Ningbo MedicalSystem and Leyard Optoelectronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo MedicalSystem and Leyard Optoelectronic
The main advantage of trading using opposite Ningbo MedicalSystem and Leyard Optoelectronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo MedicalSystem position performs unexpectedly, Leyard Optoelectronic 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 Leyard Optoelectronic will offset losses from the drop in Leyard Optoelectronic's long position.| Ningbo MedicalSystem vs. Chengdu Kanghua Biological | Ningbo MedicalSystem vs. Beijing Wantai Biological | Ningbo MedicalSystem vs. Suzhou Novoprotein Scientific | Ningbo MedicalSystem vs. Aluminum Corp of |
| Leyard Optoelectronic vs. Agricultural Bank of | Leyard Optoelectronic vs. China Construction Bank | Leyard Optoelectronic vs. Postal Savings Bank | Leyard Optoelectronic vs. Bank of Communications |
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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