Correlation Between YiDong Electronics and Leyard Optoelectronic
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By analyzing existing cross correlation between YiDong Electronics Technology and Leyard Optoelectronic, you can compare the effects of market volatilities on YiDong Electronics 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 YiDong Electronics with a short position of Leyard Optoelectronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of YiDong Electronics and Leyard Optoelectronic.
Diversification Opportunities for YiDong Electronics and Leyard Optoelectronic
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between YiDong and Leyard is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding YiDong Electronics Technology and Leyard Optoelectronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leyard Optoelectronic and YiDong Electronics 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 YiDong Electronics Technology 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 YiDong Electronics i.e., YiDong Electronics and Leyard Optoelectronic go up and down completely randomly.
Pair Corralation between YiDong Electronics and Leyard Optoelectronic
Assuming the 90 days trading horizon YiDong Electronics Technology is expected to generate 0.58 times more return on investment than Leyard Optoelectronic. However, YiDong Electronics Technology is 1.73 times less risky than Leyard Optoelectronic. It trades about 0.13 of its potential returns per unit of risk. Leyard Optoelectronic is currently generating about -0.07 per unit of risk. If you would invest 2,126 in YiDong Electronics Technology on October 12, 2024 and sell it today you would earn a total of 213.00 from holding YiDong Electronics Technology or generate 10.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
YiDong Electronics Technology vs. Leyard Optoelectronic
Performance |
| Timeline |
| YiDong Electronics |
| Leyard Optoelectronic |
YiDong Electronics and Leyard Optoelectronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YiDong Electronics and Leyard Optoelectronic
The main advantage of trading using opposite YiDong Electronics and Leyard Optoelectronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YiDong Electronics 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.| YiDong Electronics vs. Guangzhou Ruoyuchen Information | YiDong Electronics vs. Emdoor Information Co | YiDong Electronics vs. Beijing Sanyuan Foods | YiDong Electronics vs. Qingdao Foods 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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