Correlation Between Guangdong Marubi and Leyard Optoelectronic
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By analyzing existing cross correlation between Guangdong Marubi Biotechnology and Leyard Optoelectronic, you can compare the effects of market volatilities on Guangdong Marubi 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 Guangdong Marubi with a short position of Leyard Optoelectronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Marubi and Leyard Optoelectronic.
Diversification Opportunities for Guangdong Marubi and Leyard Optoelectronic
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangdong and Leyard is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Marubi Biotechnology and Leyard Optoelectronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leyard Optoelectronic and Guangdong Marubi 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 Marubi Biotechnology 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 Guangdong Marubi i.e., Guangdong Marubi and Leyard Optoelectronic go up and down completely randomly.
Pair Corralation between Guangdong Marubi and Leyard Optoelectronic
Assuming the 90 days trading horizon Guangdong Marubi Biotechnology is expected to generate 0.54 times more return on investment than Leyard Optoelectronic. However, Guangdong Marubi Biotechnology is 1.87 times less risky than Leyard Optoelectronic. It trades about 0.03 of its potential returns per unit of risk. Leyard Optoelectronic is currently generating about -0.06 per unit of risk. If you would invest 3,277 in Guangdong Marubi Biotechnology on November 3, 2024 and sell it today you would earn a total of 22.00 from holding Guangdong Marubi Biotechnology or generate 0.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Marubi Biotechnology vs. Leyard Optoelectronic
Performance |
| Timeline |
| Guangdong Marubi Bio |
| Leyard Optoelectronic |
Guangdong Marubi and Leyard Optoelectronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Marubi and Leyard Optoelectronic
The main advantage of trading using opposite Guangdong Marubi and Leyard Optoelectronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Marubi 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.| Guangdong Marubi vs. Kweichow Moutai Co | Guangdong Marubi vs. Shenzhen Mindray Bio Medical | Guangdong Marubi vs. Jiangsu Pacific Quartz | Guangdong Marubi vs. G bits Network Technology |
| Leyard Optoelectronic vs. China Publishing Media | Leyard Optoelectronic vs. Shanghai Ziyan Foods | Leyard Optoelectronic vs. Quectel Wireless Solutions | Leyard Optoelectronic vs. Huizhou Speed Wireless |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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