Correlation Between Keda Clean and Leyard Optoelectronic
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By analyzing existing cross correlation between Keda Clean Energy and Leyard Optoelectronic, you can compare the effects of market volatilities on Keda Clean 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 Keda Clean with a short position of Leyard Optoelectronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keda Clean and Leyard Optoelectronic.
Diversification Opportunities for Keda Clean and Leyard Optoelectronic
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Keda and Leyard is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Keda Clean Energy and Leyard Optoelectronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leyard Optoelectronic and Keda Clean 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 Keda Clean Energy 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 Keda Clean i.e., Keda Clean and Leyard Optoelectronic go up and down completely randomly.
Pair Corralation between Keda Clean and Leyard Optoelectronic
Assuming the 90 days trading horizon Keda Clean Energy is expected to under-perform the Leyard Optoelectronic. But the stock apears to be less risky and, when comparing its historical volatility, Keda Clean Energy is 1.44 times less risky than Leyard Optoelectronic. The stock trades about -0.05 of its potential returns per unit of risk. The Leyard Optoelectronic is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 600.00 in Leyard Optoelectronic on October 16, 2024 and sell it today you would lose (22.00) from holding Leyard Optoelectronic or give up 3.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Keda Clean Energy vs. Leyard Optoelectronic
Performance |
| Timeline |
| Keda Clean Energy |
| Leyard Optoelectronic |
Keda Clean and Leyard Optoelectronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keda Clean and Leyard Optoelectronic
The main advantage of trading using opposite Keda Clean and Leyard Optoelectronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keda Clean 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.| Keda Clean vs. Zoy Home Furnishing | Keda Clean vs. Tibet Huayu Mining | Keda Clean vs. AUPU Home Style | Keda Clean vs. Soochow Suzhou Industrial |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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