Correlation Between Guangdong Liantai and Yes Optoelectronics
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By analyzing existing cross correlation between Guangdong Liantai Environmental and Yes Optoelectronics Co, you can compare the effects of market volatilities on Guangdong Liantai and Yes Optoelectronics 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 Guangdong Liantai with a short position of Yes Optoelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Liantai and Yes Optoelectronics.
Diversification Opportunities for Guangdong Liantai and Yes Optoelectronics
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangdong and Yes is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Liantai Environmenta and Yes Optoelectronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yes Optoelectronics and Guangdong Liantai 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 Guangdong Liantai Environmental are associated (or correlated) with Yes Optoelectronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yes Optoelectronics has no effect on the direction of Guangdong Liantai i.e., Guangdong Liantai and Yes Optoelectronics go up and down completely randomly.
Pair Corralation between Guangdong Liantai and Yes Optoelectronics
Assuming the 90 days trading horizon Guangdong Liantai Environmental is expected to generate 0.31 times more return on investment than Yes Optoelectronics. However, Guangdong Liantai Environmental is 3.26 times less risky than Yes Optoelectronics. It trades about -0.17 of its potential returns per unit of risk. Yes Optoelectronics Co is currently generating about -0.19 per unit of risk. If you would invest 413.00 in Guangdong Liantai Environmental on October 25, 2024 and sell it today you would lose (24.00) from holding Guangdong Liantai Environmental or give up 5.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Liantai Environmenta vs. Yes Optoelectronics Co
Performance |
| Timeline |
| Guangdong Liantai |
| Yes Optoelectronics |
Guangdong Liantai and Yes Optoelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Liantai and Yes Optoelectronics
The main advantage of trading using opposite Guangdong Liantai and Yes Optoelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Liantai position performs unexpectedly, Yes Optoelectronics 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 Yes Optoelectronics will offset losses from the drop in Yes Optoelectronics' long position.| Guangdong Liantai vs. Kweichow Moutai Co | Guangdong Liantai vs. Contemporary Amperex Technology | Guangdong Liantai vs. Beijing Roborock Technology | Guangdong Liantai vs. BYD Co Ltd |
| Yes Optoelectronics vs. Emdoor Information Co | Yes Optoelectronics vs. Shenzhen SDG Information | Yes Optoelectronics vs. China Publishing Media | Yes Optoelectronics vs. Sportsoul Co Ltd |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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