Correlation Between Beijing Yanjing and GRINM Semiconductor
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By analyzing existing cross correlation between Beijing Yanjing Brewery and GRINM Semiconductor Materials, you can compare the effects of market volatilities on Beijing Yanjing and GRINM 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 Beijing Yanjing with a short position of GRINM Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Yanjing and GRINM Semiconductor.
Diversification Opportunities for Beijing Yanjing and GRINM Semiconductor
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Beijing and GRINM is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Yanjing Brewery and GRINM Semiconductor Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRINM Semiconductor and Beijing Yanjing 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 Beijing Yanjing Brewery are associated (or correlated) with GRINM Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRINM Semiconductor has no effect on the direction of Beijing Yanjing i.e., Beijing Yanjing and GRINM Semiconductor go up and down completely randomly.
Pair Corralation between Beijing Yanjing and GRINM Semiconductor
Assuming the 90 days trading horizon Beijing Yanjing is expected to generate 3.16 times less return on investment than GRINM Semiconductor. But when comparing it to its historical volatility, Beijing Yanjing Brewery is 1.93 times less risky than GRINM Semiconductor. It trades about 0.09 of its potential returns per unit of risk. GRINM Semiconductor Materials is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 882.00 in GRINM Semiconductor Materials on September 12, 2024 and sell it today you would earn a total of 358.00 from holding GRINM Semiconductor Materials or generate 40.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Yanjing Brewery vs. GRINM Semiconductor Materials
Performance |
| Timeline |
| Beijing Yanjing Brewery |
| GRINM Semiconductor |
Beijing Yanjing and GRINM Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Yanjing and GRINM Semiconductor
The main advantage of trading using opposite Beijing Yanjing and GRINM Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Yanjing position performs unexpectedly, GRINM 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 GRINM Semiconductor will offset losses from the drop in GRINM Semiconductor's long position.| Beijing Yanjing vs. China Petroleum Chemical | Beijing Yanjing vs. PetroChina Co Ltd | Beijing Yanjing vs. China State Construction | Beijing Yanjing vs. China Railway Group |
| GRINM Semiconductor vs. Gansu Jiu Steel | GRINM Semiconductor vs. Shandong Mining Machinery | GRINM Semiconductor vs. Aba Chemicals Corp | GRINM Semiconductor vs. BlueFocus Communication 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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