Correlation Between Kunshan Guoli and Leyard Optoelectronic
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By analyzing existing cross correlation between Kunshan Guoli Electronic and Leyard Optoelectronic, you can compare the effects of market volatilities on Kunshan Guoli 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 Kunshan Guoli with a short position of Leyard Optoelectronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kunshan Guoli and Leyard Optoelectronic.
Diversification Opportunities for Kunshan Guoli and Leyard Optoelectronic
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kunshan and Leyard is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Kunshan Guoli Electronic and Leyard Optoelectronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leyard Optoelectronic and Kunshan Guoli 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 Kunshan Guoli Electronic 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 Kunshan Guoli i.e., Kunshan Guoli and Leyard Optoelectronic go up and down completely randomly.
Pair Corralation between Kunshan Guoli and Leyard Optoelectronic
Assuming the 90 days trading horizon Kunshan Guoli is expected to generate 2.22 times less return on investment than Leyard Optoelectronic. In addition to that, Kunshan Guoli is 1.61 times more volatile than Leyard Optoelectronic. It trades about 0.04 of its total potential returns per unit of risk. Leyard Optoelectronic is currently generating about 0.13 per unit of volatility. If you would invest 506.00 in Leyard Optoelectronic on September 2, 2024 and sell it today you would earn a total of 33.00 from holding Leyard Optoelectronic or generate 6.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kunshan Guoli Electronic vs. Leyard Optoelectronic
Performance |
| Timeline |
| Kunshan Guoli Electronic |
| Leyard Optoelectronic |
Kunshan Guoli and Leyard Optoelectronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kunshan Guoli and Leyard Optoelectronic
The main advantage of trading using opposite Kunshan Guoli and Leyard Optoelectronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kunshan Guoli 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.| Kunshan Guoli vs. HaiXin Foods Co | Kunshan Guoli vs. Guangdong Brandmax Marketing | Kunshan Guoli vs. Youyou Foods Co | Kunshan Guoli vs. Gan Yuan Foods |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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