Correlation Between Yuan Longping and GRINM Semiconductor
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By analyzing existing cross correlation between Yuan Longping High tech and GRINM Semiconductor Materials, you can compare the effects of market volatilities on Yuan Longping 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 Yuan Longping with a short position of GRINM Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuan Longping and GRINM Semiconductor.
Diversification Opportunities for Yuan Longping and GRINM Semiconductor
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yuan and GRINM is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Yuan Longping High tech and GRINM Semiconductor Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRINM Semiconductor and Yuan Longping 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 Yuan Longping High tech 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 Yuan Longping i.e., Yuan Longping and GRINM Semiconductor go up and down completely randomly.
Pair Corralation between Yuan Longping and GRINM Semiconductor
Assuming the 90 days trading horizon Yuan Longping High tech is expected to under-perform the GRINM Semiconductor. But the stock apears to be less risky and, when comparing its historical volatility, Yuan Longping High tech is 1.51 times less risky than GRINM Semiconductor. The stock trades about -0.05 of its potential returns per unit of risk. The GRINM Semiconductor Materials is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 976.00 in GRINM Semiconductor Materials on October 22, 2024 and sell it today you would earn a total of 105.00 from holding GRINM Semiconductor Materials or generate 10.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yuan Longping High tech vs. GRINM Semiconductor Materials
Performance |
| Timeline |
| Yuan Longping High |
| GRINM Semiconductor |
Yuan Longping and GRINM Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuan Longping and GRINM Semiconductor
The main advantage of trading using opposite Yuan Longping and GRINM Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuan Longping 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.| Yuan Longping vs. Pengxin International Mining | Yuan Longping vs. Chenzhou Jingui Silver | Yuan Longping vs. Zhongjing Food Co | Yuan Longping vs. JCHX Mining Management |
| GRINM Semiconductor vs. Qingdao Choho Industrial | GRINM Semiconductor vs. Pengxin International Mining | GRINM Semiconductor vs. Tianjin Silvery Dragon | GRINM Semiconductor vs. Chengtun Mining 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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