Correlation Between Jilin Chemical and Puya Semiconductor
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By analyzing existing cross correlation between Jilin Chemical Fibre and Puya Semiconductor Shanghai, you can compare the effects of market volatilities on Jilin Chemical and Puya Semiconductor 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 Puya Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Chemical and Puya Semiconductor.
Diversification Opportunities for Jilin Chemical and Puya Semiconductor
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jilin and Puya is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Chemical Fibre and Puya Semiconductor Shanghai in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Puya Semiconductor 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 Puya Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Puya Semiconductor has no effect on the direction of Jilin Chemical i.e., Jilin Chemical and Puya Semiconductor go up and down completely randomly.
Pair Corralation between Jilin Chemical and Puya Semiconductor
Assuming the 90 days trading horizon Jilin Chemical Fibre is expected to under-perform the Puya Semiconductor. But the stock apears to be less risky and, when comparing its historical volatility, Jilin Chemical Fibre is 2.32 times less risky than Puya Semiconductor. The stock trades about -0.52 of its potential returns per unit of risk. The Puya Semiconductor Shanghai is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 11,266 in Puya Semiconductor Shanghai on October 16, 2024 and sell it today you would lose (907.00) from holding Puya Semiconductor Shanghai or give up 8.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jilin Chemical Fibre vs. Puya Semiconductor Shanghai
Performance |
| Timeline |
| Jilin Chemical Fibre |
| Puya Semiconductor |
Jilin Chemical and Puya Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Chemical and Puya Semiconductor
The main advantage of trading using opposite Jilin Chemical and Puya Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Chemical position performs unexpectedly, Puya Semiconductor 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 Puya Semiconductor will offset losses from the drop in Puya Semiconductor's long position.| Jilin Chemical vs. Jinhui Mining Co | Jilin Chemical vs. Everjoy Health Group | Jilin Chemical vs. Shenyang Blue Silver | Jilin Chemical vs. Hainan Mining Co |
| Puya Semiconductor vs. Hubei Geoway Investment | Puya Semiconductor vs. Hunan Investment Group | Puya Semiconductor vs. Chengdu Xingrong Investment | Puya Semiconductor vs. Jointo Energy Investment |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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