Correlation Between Guocheng Mining and Yuanjie Semiconductor
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By analyzing existing cross correlation between Guocheng Mining Co and Yuanjie Semiconductor Technology, you can compare the effects of market volatilities on Guocheng Mining and Yuanjie 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 Guocheng Mining with a short position of Yuanjie Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guocheng Mining and Yuanjie Semiconductor.
Diversification Opportunities for Guocheng Mining and Yuanjie Semiconductor
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guocheng and Yuanjie is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Guocheng Mining Co and Yuanjie Semiconductor Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yuanjie Semiconductor and Guocheng Mining 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 Guocheng Mining Co are associated (or correlated) with Yuanjie Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yuanjie Semiconductor has no effect on the direction of Guocheng Mining i.e., Guocheng Mining and Yuanjie Semiconductor go up and down completely randomly.
Pair Corralation between Guocheng Mining and Yuanjie Semiconductor
Assuming the 90 days trading horizon Guocheng Mining is expected to generate 15.73 times less return on investment than Yuanjie Semiconductor. But when comparing it to its historical volatility, Guocheng Mining Co is 2.01 times less risky than Yuanjie Semiconductor. It trades about 0.01 of its potential returns per unit of risk. Yuanjie Semiconductor Technology is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 8,325 in Yuanjie Semiconductor Technology on September 13, 2024 and sell it today you would earn a total of 6,135 from holding Yuanjie Semiconductor Technology or generate 73.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guocheng Mining Co vs. Yuanjie Semiconductor Technolo
Performance |
| Timeline |
| Guocheng Mining |
| Yuanjie Semiconductor |
Guocheng Mining and Yuanjie Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guocheng Mining and Yuanjie Semiconductor
The main advantage of trading using opposite Guocheng Mining and Yuanjie Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guocheng Mining position performs unexpectedly, Yuanjie 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 Yuanjie Semiconductor will offset losses from the drop in Yuanjie Semiconductor's long position.| Guocheng Mining vs. Cambricon Technologies Corp | Guocheng Mining vs. Loongson Technology Corp | Guocheng Mining vs. Shenzhen Fortune Trend | Guocheng Mining vs. Chongqing Road Bridge |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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