Correlation Between Guangdong Jingyi and Southchip Semiconductor
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By analyzing existing cross correlation between Guangdong Jingyi Metal and Southchip Semiconductor Technology, you can compare the effects of market volatilities on Guangdong Jingyi and Southchip 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 Southchip Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and Southchip Semiconductor.
Diversification Opportunities for Guangdong Jingyi and Southchip Semiconductor
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangdong and Southchip is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal and Southchip Semiconductor Techno in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southchip 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 Southchip Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southchip Semiconductor has no effect on the direction of Guangdong Jingyi i.e., Guangdong Jingyi and Southchip Semiconductor go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and Southchip Semiconductor
Assuming the 90 days trading horizon Guangdong Jingyi is expected to generate 4.32 times less return on investment than Southchip Semiconductor. But when comparing it to its historical volatility, Guangdong Jingyi Metal is 1.75 times less risky than Southchip Semiconductor. It trades about 0.1 of its potential returns per unit of risk. Southchip Semiconductor Technology is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 3,422 in Southchip Semiconductor Technology on September 4, 2024 and sell it today you would earn a total of 505.00 from holding Southchip Semiconductor Technology or generate 14.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Jingyi Metal vs. Southchip Semiconductor Techno
Performance |
| Timeline |
| Guangdong Jingyi Metal |
| Southchip Semiconductor |
Guangdong Jingyi and Southchip Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jingyi and Southchip Semiconductor
The main advantage of trading using opposite Guangdong Jingyi and Southchip Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi position performs unexpectedly, Southchip 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 Southchip Semiconductor will offset losses from the drop in Southchip Semiconductor's long position.| Guangdong Jingyi vs. Anji Foodstuff Co | Guangdong Jingyi vs. Guilin Seamild Foods | Guangdong Jingyi vs. Tianshan Aluminum Group | Guangdong Jingyi vs. Muyuan Foodstuff Co |
| Southchip Semiconductor vs. Cowealth Medical China | Southchip Semiconductor vs. Shanghai Yaoji Playing | Southchip Semiconductor vs. Hengkang Medical Group | Southchip Semiconductor vs. Xiamen Bank Co |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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