Correlation Between Maccura Biotechnology and Leyard Optoelectronic
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By analyzing existing cross correlation between Maccura Biotechnology Co and Leyard Optoelectronic, you can compare the effects of market volatilities on Maccura Biotechnology 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 Maccura Biotechnology with a short position of Leyard Optoelectronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maccura Biotechnology and Leyard Optoelectronic.
Diversification Opportunities for Maccura Biotechnology and Leyard Optoelectronic
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Maccura and Leyard is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Maccura Biotechnology Co and Leyard Optoelectronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leyard Optoelectronic and Maccura Biotechnology 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 Maccura Biotechnology Co 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 Maccura Biotechnology i.e., Maccura Biotechnology and Leyard Optoelectronic go up and down completely randomly.
Pair Corralation between Maccura Biotechnology and Leyard Optoelectronic
Assuming the 90 days trading horizon Maccura Biotechnology Co is expected to under-perform the Leyard Optoelectronic. But the stock apears to be less risky and, when comparing its historical volatility, Maccura Biotechnology Co is 1.94 times less risky than Leyard Optoelectronic. The stock trades about -0.13 of its potential returns per unit of risk. The Leyard Optoelectronic is currently generating about 0.33 of returns per unit of risk over similar time horizon. 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 |
Maccura Biotechnology Co vs. Leyard Optoelectronic
Performance |
| Timeline |
| Maccura Biotechnology |
| Leyard Optoelectronic |
Maccura Biotechnology and Leyard Optoelectronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maccura Biotechnology and Leyard Optoelectronic
The main advantage of trading using opposite Maccura Biotechnology and Leyard Optoelectronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maccura Biotechnology 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.| Maccura Biotechnology vs. Guangzhou Restaurants Group | Maccura Biotechnology vs. Hunan Investment Group | Maccura Biotechnology vs. Changchun Faway Automobile | Maccura Biotechnology vs. CSSC Offshore Marine |
| Leyard Optoelectronic vs. Industrial and Commercial | Leyard Optoelectronic vs. Agricultural Bank of | Leyard Optoelectronic vs. China Construction Bank | Leyard Optoelectronic vs. Bank of China |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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