Correlation Between Nantong Haixing and Leyard Optoelectronic
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By analyzing existing cross correlation between Nantong Haixing Electronics and Leyard Optoelectronic, you can compare the effects of market volatilities on Nantong Haixing 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 Nantong Haixing with a short position of Leyard Optoelectronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nantong Haixing and Leyard Optoelectronic.
Diversification Opportunities for Nantong Haixing and Leyard Optoelectronic
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Nantong and Leyard is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Nantong Haixing Electronics and Leyard Optoelectronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leyard Optoelectronic and Nantong Haixing 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 Nantong Haixing Electronics 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 Nantong Haixing i.e., Nantong Haixing and Leyard Optoelectronic go up and down completely randomly.
Pair Corralation between Nantong Haixing and Leyard Optoelectronic
Assuming the 90 days trading horizon Nantong Haixing is expected to generate 25.61 times less return on investment than Leyard Optoelectronic. But when comparing it to its historical volatility, Nantong Haixing Electronics is 1.42 times less risky than Leyard Optoelectronic. It trades about 0.0 of its potential returns per unit of risk. Leyard Optoelectronic is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 685.00 in Leyard Optoelectronic on November 28, 2024 and sell it today you would earn a total of 80.00 from holding Leyard Optoelectronic or generate 11.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nantong Haixing Electronics vs. Leyard Optoelectronic
Performance |
| Timeline |
| Nantong Haixing Elec |
| Leyard Optoelectronic |
Nantong Haixing and Leyard Optoelectronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nantong Haixing and Leyard Optoelectronic
The main advantage of trading using opposite Nantong Haixing and Leyard Optoelectronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nantong Haixing 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.| Nantong Haixing vs. Guangzhou Seagull Kitchen | Nantong Haixing vs. Zhongyin Babi Food | Nantong Haixing vs. Ligao Foods CoLtd | Nantong Haixing vs. Elite Color Environmental |
| Leyard Optoelectronic vs. Ming Yang Smart | Leyard Optoelectronic vs. 159681 | Leyard Optoelectronic vs. 159005 | Leyard Optoelectronic vs. Loctek Ergonomic Technology |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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