Correlation Between Anhui Gujing and Nexchip Semiconductor
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By analyzing existing cross correlation between Anhui Gujing Distillery and Nexchip Semiconductor Corp, you can compare the effects of market volatilities on Anhui Gujing and Nexchip 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 Anhui Gujing with a short position of Nexchip Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Gujing and Nexchip Semiconductor.
Diversification Opportunities for Anhui Gujing and Nexchip Semiconductor
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anhui and Nexchip is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Gujing Distillery and Nexchip Semiconductor Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexchip Semiconductor and Anhui Gujing 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 Anhui Gujing Distillery are associated (or correlated) with Nexchip Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nexchip Semiconductor has no effect on the direction of Anhui Gujing i.e., Anhui Gujing and Nexchip Semiconductor go up and down completely randomly.
Pair Corralation between Anhui Gujing and Nexchip Semiconductor
Assuming the 90 days trading horizon Anhui Gujing is expected to generate 19.94 times less return on investment than Nexchip Semiconductor. But when comparing it to its historical volatility, Anhui Gujing Distillery is 1.88 times less risky than Nexchip Semiconductor. It trades about 0.02 of its potential returns per unit of risk. Nexchip Semiconductor Corp is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 2,035 in Nexchip Semiconductor Corp on September 1, 2024 and sell it today you would earn a total of 591.00 from holding Nexchip Semiconductor Corp or generate 29.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Gujing Distillery vs. Nexchip Semiconductor Corp
Performance |
| Timeline |
| Anhui Gujing Distillery |
| Nexchip Semiconductor |
Anhui Gujing and Nexchip Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Gujing and Nexchip Semiconductor
The main advantage of trading using opposite Anhui Gujing and Nexchip Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Gujing position performs unexpectedly, Nexchip 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 Nexchip Semiconductor will offset losses from the drop in Nexchip Semiconductor's long position.| Anhui Gujing vs. Will Semiconductor Co | Anhui Gujing vs. Zhongtong Guomai Communication | Anhui Gujing vs. Wuhan Yangtze Communication | Anhui Gujing vs. GRINM Semiconductor Materials |
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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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