Correlation Between Jiugui Liquor and Yuanjie Semiconductor
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By analyzing existing cross correlation between Jiugui Liquor Co and Yuanjie Semiconductor Technology, you can compare the effects of market volatilities on Jiugui Liquor 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 Jiugui Liquor with a short position of Yuanjie Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiugui Liquor and Yuanjie Semiconductor.
Diversification Opportunities for Jiugui Liquor and Yuanjie Semiconductor
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jiugui and Yuanjie is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Jiugui Liquor 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 Jiugui Liquor 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 Jiugui Liquor 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 Jiugui Liquor i.e., Jiugui Liquor and Yuanjie Semiconductor go up and down completely randomly.
Pair Corralation between Jiugui Liquor and Yuanjie Semiconductor
Assuming the 90 days trading horizon Jiugui Liquor Co is expected to under-perform the Yuanjie Semiconductor. But the stock apears to be less risky and, when comparing its historical volatility, Jiugui Liquor Co is 1.54 times less risky than Yuanjie Semiconductor. The stock trades about -0.5 of its potential returns per unit of risk. The Yuanjie Semiconductor Technology is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 13,718 in Yuanjie Semiconductor Technology on October 14, 2024 and sell it today you would lose (665.00) from holding Yuanjie Semiconductor Technology or give up 4.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiugui Liquor Co vs. Yuanjie Semiconductor Technolo
Performance |
| Timeline |
| Jiugui Liquor |
| Yuanjie Semiconductor |
Jiugui Liquor and Yuanjie Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiugui Liquor and Yuanjie Semiconductor
The main advantage of trading using opposite Jiugui Liquor and Yuanjie Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiugui Liquor 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.| Jiugui Liquor vs. Western Metal Materials | Jiugui Liquor vs. FSPG Hi Tech Co | Jiugui Liquor vs. Shenyang Huitian Thermal | Jiugui Liquor vs. Ningbo Jintian Copper |
| Yuanjie Semiconductor vs. Jiugui Liquor Co | Yuanjie Semiconductor vs. Panda Dairy Corp | Yuanjie Semiconductor vs. Vats Liquor Chain | Yuanjie Semiconductor vs. Zhongyin Babi Food |
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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