Correlation Between Jilin Chemical and Semiconductor Manufacturing
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By analyzing existing cross correlation between Jilin Chemical Fibre and Semiconductor Manufacturing Electronics, you can compare the effects of market volatilities on Jilin Chemical and Semiconductor Manufacturing 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 Jilin Chemical with a short position of Semiconductor Manufacturing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Chemical and Semiconductor Manufacturing.
Diversification Opportunities for Jilin Chemical and Semiconductor Manufacturing
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jilin and Semiconductor is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Chemical Fibre and Semiconductor Manufacturing El in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Semiconductor Manufacturing and Jilin Chemical 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 Jilin Chemical Fibre are associated (or correlated) with Semiconductor Manufacturing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Semiconductor Manufacturing has no effect on the direction of Jilin Chemical i.e., Jilin Chemical and Semiconductor Manufacturing go up and down completely randomly.
Pair Corralation between Jilin Chemical and Semiconductor Manufacturing
Assuming the 90 days trading horizon Jilin Chemical Fibre is expected to under-perform the Semiconductor Manufacturing. In addition to that, Jilin Chemical is 1.37 times more volatile than Semiconductor Manufacturing Electronics. It trades about -0.54 of its total potential returns per unit of risk. Semiconductor Manufacturing Electronics is currently generating about -0.7 per unit of volatility. If you would invest 561.00 in Semiconductor Manufacturing Electronics on October 16, 2024 and sell it today you would lose (110.00) from holding Semiconductor Manufacturing Electronics or give up 19.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jilin Chemical Fibre vs. Semiconductor Manufacturing El
Performance |
| Timeline |
| Jilin Chemical Fibre |
| Semiconductor Manufacturing |
Jilin Chemical and Semiconductor Manufacturing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Chemical and Semiconductor Manufacturing
The main advantage of trading using opposite Jilin Chemical and Semiconductor Manufacturing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Chemical position performs unexpectedly, Semiconductor Manufacturing 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 Semiconductor Manufacturing will offset losses from the drop in Semiconductor Manufacturing's long position.| Jilin Chemical vs. Bingo Software Co | Jilin Chemical vs. Servyou Software Group | Jilin Chemical vs. China National Software | Jilin Chemical vs. Guotai Epoint Software |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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