Correlation Between Shenzhen Hifuture and Yuanjie Semiconductor
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By analyzing existing cross correlation between Shenzhen Hifuture Electric and Yuanjie Semiconductor Technology, you can compare the effects of market volatilities on Shenzhen Hifuture 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 Shenzhen Hifuture with a short position of Yuanjie Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Hifuture and Yuanjie Semiconductor.
Diversification Opportunities for Shenzhen Hifuture and Yuanjie Semiconductor
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shenzhen and Yuanjie is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Hifuture Electric and Yuanjie Semiconductor Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yuanjie Semiconductor and Shenzhen Hifuture 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 Shenzhen Hifuture Electric 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 Shenzhen Hifuture i.e., Shenzhen Hifuture and Yuanjie Semiconductor go up and down completely randomly.
Pair Corralation between Shenzhen Hifuture and Yuanjie Semiconductor
Assuming the 90 days trading horizon Shenzhen Hifuture Electric is expected to under-perform the Yuanjie Semiconductor. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen Hifuture Electric is 1.64 times less risky than Yuanjie Semiconductor. The stock trades about -0.25 of its potential returns per unit of risk. The Yuanjie Semiconductor Technology is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 12,736 in Yuanjie Semiconductor Technology on November 6, 2024 and sell it today you would earn a total of 1,825 from holding Yuanjie Semiconductor Technology or generate 14.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Hifuture Electric vs. Yuanjie Semiconductor Technolo
Performance |
| Timeline |
| Shenzhen Hifuture |
| Yuanjie Semiconductor |
Shenzhen Hifuture and Yuanjie Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Hifuture and Yuanjie Semiconductor
The main advantage of trading using opposite Shenzhen Hifuture and Yuanjie Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Hifuture 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.| Shenzhen Hifuture vs. Youngy Health Co | Shenzhen Hifuture vs. Impulse Qingdao Health | Shenzhen Hifuture vs. Guangzhou Seagull Kitchen | Shenzhen Hifuture vs. Anhui Huaren Health |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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