Correlation Between Shandong Gold and Leyard Optoelectronic
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By analyzing existing cross correlation between Shandong Gold Mining and Leyard Optoelectronic, you can compare the effects of market volatilities on Shandong Gold 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 Shandong Gold with a short position of Leyard Optoelectronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Gold and Leyard Optoelectronic.
Diversification Opportunities for Shandong Gold and Leyard Optoelectronic
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shandong and Leyard is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Gold Mining and Leyard Optoelectronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leyard Optoelectronic and Shandong Gold 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 Shandong Gold Mining 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 Shandong Gold i.e., Shandong Gold and Leyard Optoelectronic go up and down completely randomly.
Pair Corralation between Shandong Gold and Leyard Optoelectronic
Assuming the 90 days trading horizon Shandong Gold is expected to generate 28.84 times less return on investment than Leyard Optoelectronic. But when comparing it to its historical volatility, Shandong Gold Mining is 2.81 times less risky than Leyard Optoelectronic. It trades about 0.03 of its potential returns per unit of risk. 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Gold Mining vs. Leyard Optoelectronic
Performance |
| Timeline |
| Shandong Gold Mining |
| Leyard Optoelectronic |
Shandong Gold and Leyard Optoelectronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Gold and Leyard Optoelectronic
The main advantage of trading using opposite Shandong Gold and Leyard Optoelectronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Gold 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.| Shandong Gold vs. Guangdong Brandmax Marketing | Shandong Gold vs. Hainan Haiqi Transportation | Shandong Gold vs. Sunny Loan Top | Shandong Gold vs. Shaanxi Meineng Clean |
| 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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