Correlation Between Jiangyin Jianghua and Leyard Optoelectronic
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By analyzing existing cross correlation between Jiangyin Jianghua Microelectronics and Leyard Optoelectronic, you can compare the effects of market volatilities on Jiangyin Jianghua 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 Jiangyin Jianghua with a short position of Leyard Optoelectronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangyin Jianghua and Leyard Optoelectronic.
Diversification Opportunities for Jiangyin Jianghua and Leyard Optoelectronic
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangyin and Leyard is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Jiangyin Jianghua Microelectro and Leyard Optoelectronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leyard Optoelectronic and Jiangyin Jianghua 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 Jiangyin Jianghua Microelectronics 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 Jiangyin Jianghua i.e., Jiangyin Jianghua and Leyard Optoelectronic go up and down completely randomly.
Pair Corralation between Jiangyin Jianghua and Leyard Optoelectronic
Assuming the 90 days trading horizon Jiangyin Jianghua Microelectronics is expected to generate 1.93 times more return on investment than Leyard Optoelectronic. However, Jiangyin Jianghua is 1.93 times more volatile than Leyard Optoelectronic. It trades about 0.26 of its potential returns per unit of risk. Leyard Optoelectronic is currently generating about 0.03 per unit of risk. If you would invest 1,570 in Jiangyin Jianghua Microelectronics on September 1, 2024 and sell it today you would earn a total of 486.00 from holding Jiangyin Jianghua Microelectronics or generate 30.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangyin Jianghua Microelectro vs. Leyard Optoelectronic
Performance |
| Timeline |
| Jiangyin Jianghua |
| Leyard Optoelectronic |
Jiangyin Jianghua and Leyard Optoelectronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangyin Jianghua and Leyard Optoelectronic
The main advantage of trading using opposite Jiangyin Jianghua and Leyard Optoelectronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangyin Jianghua 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.| Jiangyin Jianghua vs. Zhejiang Kingland Pipeline | Jiangyin Jianghua vs. Anhui Deli Household | Jiangyin Jianghua vs. Chahua Modern Housewares | Jiangyin Jianghua vs. Shandong Mining Machinery |
| Leyard Optoelectronic vs. Cultural Investment Holdings | Leyard Optoelectronic vs. Gome Telecom Equipment | Leyard Optoelectronic vs. Bus Online Co | Leyard Optoelectronic vs. Zotye Automobile 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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