Correlation Between Guangdong Jingyi and Shannon Semiconductor
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By analyzing existing cross correlation between Guangdong Jingyi Metal and Shannon Semiconductor Technology, you can compare the effects of market volatilities on Guangdong Jingyi and Shannon 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 Guangdong Jingyi with a short position of Shannon Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and Shannon Semiconductor.
Diversification Opportunities for Guangdong Jingyi and Shannon Semiconductor
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Guangdong and Shannon is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal and Shannon Semiconductor Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shannon Semiconductor and Guangdong Jingyi 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 Guangdong Jingyi Metal are associated (or correlated) with Shannon Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shannon Semiconductor has no effect on the direction of Guangdong Jingyi i.e., Guangdong Jingyi and Shannon Semiconductor go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and Shannon Semiconductor
Assuming the 90 days trading horizon Guangdong Jingyi Metal is expected to generate 1.04 times more return on investment than Shannon Semiconductor. However, Guangdong Jingyi is 1.04 times more volatile than Shannon Semiconductor Technology. It trades about 0.45 of its potential returns per unit of risk. Shannon Semiconductor Technology is currently generating about 0.16 per unit of risk. If you would invest 620.00 in Guangdong Jingyi Metal on November 5, 2024 and sell it today you would earn a total of 109.00 from holding Guangdong Jingyi Metal or generate 17.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Jingyi Metal vs. Shannon Semiconductor Technolo
Performance |
| Timeline |
| Guangdong Jingyi Metal |
| Shannon Semiconductor |
Guangdong Jingyi and Shannon Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jingyi and Shannon Semiconductor
The main advantage of trading using opposite Guangdong Jingyi and Shannon Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi position performs unexpectedly, Shannon 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 Shannon Semiconductor will offset losses from the drop in Shannon Semiconductor's long position.| Guangdong Jingyi vs. Allgens Medical Technology | Guangdong Jingyi vs. Hubeiyichang Transportation Group | Guangdong Jingyi vs. Kontour Medical Technology | Guangdong Jingyi vs. China Sports Industry |
| Shannon Semiconductor vs. BeiGene | Shannon Semiconductor vs. Kweichow Moutai Co | Shannon Semiconductor vs. Beijing Roborock Technology | Shannon Semiconductor vs. G bits Network Technology |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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