Correlation Between Shanghai Xinhua and Leyard Optoelectronic
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By analyzing existing cross correlation between Shanghai Xinhua Media and Leyard Optoelectronic, you can compare the effects of market volatilities on Shanghai Xinhua 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 Shanghai Xinhua with a short position of Leyard Optoelectronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Xinhua and Leyard Optoelectronic.
Diversification Opportunities for Shanghai Xinhua and Leyard Optoelectronic
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shanghai and Leyard is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Xinhua Media and Leyard Optoelectronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leyard Optoelectronic and Shanghai Xinhua 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 Shanghai Xinhua Media 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 Shanghai Xinhua i.e., Shanghai Xinhua and Leyard Optoelectronic go up and down completely randomly.
Pair Corralation between Shanghai Xinhua and Leyard Optoelectronic
Assuming the 90 days trading horizon Shanghai Xinhua Media is expected to generate 1.19 times more return on investment than Leyard Optoelectronic. However, Shanghai Xinhua is 1.19 times more volatile than Leyard Optoelectronic. It trades about 0.03 of its potential returns per unit of risk. Leyard Optoelectronic is currently generating about 0.01 per unit of risk. If you would invest 488.00 in Shanghai Xinhua Media on November 6, 2024 and sell it today you would earn a total of 103.00 from holding Shanghai Xinhua Media or generate 21.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Xinhua Media vs. Leyard Optoelectronic
Performance |
| Timeline |
| Shanghai Xinhua Media |
| Leyard Optoelectronic |
Shanghai Xinhua and Leyard Optoelectronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Xinhua and Leyard Optoelectronic
The main advantage of trading using opposite Shanghai Xinhua and Leyard Optoelectronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Xinhua 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.| Shanghai Xinhua vs. Zhejiang Huatong Meat | Shanghai Xinhua vs. Suzhou Weizhixiang Food | Shanghai Xinhua vs. Lotus Health Group | Shanghai Xinhua vs. Yan Tai Shuang |
| Leyard Optoelectronic vs. Jilin OLED Material | Leyard Optoelectronic vs. Wuxi Double Elephant | Leyard Optoelectronic vs. Beijing Lier High | Leyard Optoelectronic vs. Konfoong Materials International |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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