Correlation Between Ningbo Jianan and Leyard Optoelectronic
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By analyzing existing cross correlation between Ningbo Jianan Electronics and Leyard Optoelectronic, you can compare the effects of market volatilities on Ningbo Jianan 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 Jianan with a short position of Leyard Optoelectronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Jianan and Leyard Optoelectronic.
Diversification Opportunities for Ningbo Jianan 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 Jianan Electronics and Leyard Optoelectronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leyard Optoelectronic and Ningbo Jianan 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 Jianan Electronics 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 Jianan i.e., Ningbo Jianan and Leyard Optoelectronic go up and down completely randomly.
Pair Corralation between Ningbo Jianan and Leyard Optoelectronic
Assuming the 90 days trading horizon Ningbo Jianan Electronics is expected to generate 1.31 times more return on investment than Leyard Optoelectronic. However, Ningbo Jianan is 1.31 times more volatile than Leyard Optoelectronic. It trades about 0.22 of its potential returns per unit of risk. Leyard Optoelectronic is currently generating about 0.13 per unit of risk. If you would invest 2,061 in Ningbo Jianan Electronics on September 2, 2024 and sell it today you would earn a total of 325.00 from holding Ningbo Jianan Electronics or generate 15.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Jianan Electronics vs. Leyard Optoelectronic
Performance |
| Timeline |
| Ningbo Jianan Electronics |
| Leyard Optoelectronic |
Ningbo Jianan and Leyard Optoelectronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Jianan and Leyard Optoelectronic
The main advantage of trading using opposite Ningbo Jianan and Leyard Optoelectronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Jianan 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 Jianan vs. Dalian Zeus Entertainment | Ningbo Jianan vs. JiShi Media Co | Ningbo Jianan vs. China Satellite Communications | Ningbo Jianan vs. TVZone Media 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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