Correlation Between Sanxiang Advanced and Leyard Optoelectronic
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By analyzing existing cross correlation between Sanxiang Advanced Materials and Leyard Optoelectronic, you can compare the effects of market volatilities on Sanxiang Advanced 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 Sanxiang Advanced with a short position of Leyard Optoelectronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sanxiang Advanced and Leyard Optoelectronic.
Diversification Opportunities for Sanxiang Advanced and Leyard Optoelectronic
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sanxiang and Leyard is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Sanxiang Advanced Materials and Leyard Optoelectronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leyard Optoelectronic and Sanxiang Advanced 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 Sanxiang Advanced Materials 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 Sanxiang Advanced i.e., Sanxiang Advanced and Leyard Optoelectronic go up and down completely randomly.
Pair Corralation between Sanxiang Advanced and Leyard Optoelectronic
Assuming the 90 days trading horizon Sanxiang Advanced Materials is expected to generate 1.54 times more return on investment than Leyard Optoelectronic. However, Sanxiang Advanced is 1.54 times more volatile than Leyard Optoelectronic. It trades about 0.01 of its potential returns per unit of risk. Leyard Optoelectronic is currently generating about -0.02 per unit of risk. If you would invest 1,754 in Sanxiang Advanced Materials on August 29, 2024 and sell it today you would lose (20.00) from holding Sanxiang Advanced Materials or give up 1.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sanxiang Advanced Materials vs. Leyard Optoelectronic
Performance |
| Timeline |
| Sanxiang Advanced |
| Leyard Optoelectronic |
Sanxiang Advanced and Leyard Optoelectronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sanxiang Advanced and Leyard Optoelectronic
The main advantage of trading using opposite Sanxiang Advanced and Leyard Optoelectronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sanxiang Advanced 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.| Sanxiang Advanced vs. Leyard Optoelectronic | Sanxiang Advanced vs. Bus Online Co | Sanxiang Advanced vs. Zhongrun Resources Investment | Sanxiang Advanced vs. Ningbo Ligong Online |
| Leyard Optoelectronic vs. China State Construction | Leyard Optoelectronic vs. Huafa Industrial Co | Leyard Optoelectronic vs. China International Capital | Leyard Optoelectronic vs. Kweichow Moutai 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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