Correlation Between Biwin Storage and Leyard Optoelectronic
Specify exactly 2 symbols:
By analyzing existing cross correlation between Biwin Storage Technology and Leyard Optoelectronic, you can compare the effects of market volatilities on Biwin Storage 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 Biwin Storage with a short position of Leyard Optoelectronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biwin Storage and Leyard Optoelectronic.
Diversification Opportunities for Biwin Storage and Leyard Optoelectronic
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Biwin and Leyard is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Biwin Storage Technology and Leyard Optoelectronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leyard Optoelectronic and Biwin Storage 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 Biwin Storage Technology 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 Biwin Storage i.e., Biwin Storage and Leyard Optoelectronic go up and down completely randomly.
Pair Corralation between Biwin Storage and Leyard Optoelectronic
Assuming the 90 days trading horizon Biwin Storage Technology is expected to under-perform the Leyard Optoelectronic. But the stock apears to be less risky and, when comparing its historical volatility, Biwin Storage Technology is 1.38 times less risky than Leyard Optoelectronic. The stock trades about -0.15 of its potential returns per unit of risk. The Leyard Optoelectronic is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 725.00 in Leyard Optoelectronic on October 25, 2024 and sell it today you would lose (54.00) from holding Leyard Optoelectronic or give up 7.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Biwin Storage Technology vs. Leyard Optoelectronic
Performance |
| Timeline |
| Biwin Storage Technology |
| Leyard Optoelectronic |
Biwin Storage and Leyard Optoelectronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biwin Storage and Leyard Optoelectronic
The main advantage of trading using opposite Biwin Storage and Leyard Optoelectronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biwin Storage 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.| Biwin Storage vs. Offshore Oil Engineering | Biwin Storage vs. Hainan Mining Co | Biwin Storage vs. CSSC Offshore Marine | Biwin Storage vs. Chengtun Mining Group |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |