Correlation Between 159681 and ACM Research
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By analyzing existing cross correlation between 159681 and ACM Research Shanghai, you can compare the effects of market volatilities on 159681 and ACM Research 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 159681 with a short position of ACM Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159681 and ACM Research.
Diversification Opportunities for 159681 and ACM Research
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 159681 and ACM is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding 159681 and ACM Research Shanghai in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACM Research Shanghai and 159681 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 159681 are associated (or correlated) with ACM Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACM Research Shanghai has no effect on the direction of 159681 i.e., 159681 and ACM Research go up and down completely randomly.
Pair Corralation between 159681 and ACM Research
Assuming the 90 days trading horizon 159681 is expected to generate 6.88 times less return on investment than ACM Research. But when comparing it to its historical volatility, 159681 is 1.35 times less risky than ACM Research. It trades about 0.01 of its potential returns per unit of risk. ACM Research Shanghai is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 8,184 in ACM Research Shanghai on September 26, 2024 and sell it today you would earn a total of 2,410 from holding ACM Research Shanghai or generate 29.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
159681 vs. ACM Research Shanghai
Performance |
| Timeline |
| 159681 |
| ACM Research Shanghai |
159681 and ACM Research Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 159681 and ACM Research
The main advantage of trading using opposite 159681 and ACM Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159681 position performs unexpectedly, ACM Research 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 ACM Research will offset losses from the drop in ACM Research's long position.The idea behind 159681 and ACM Research Shanghai pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| ACM Research vs. Ming Yang Smart | ACM Research vs. 159681 | ACM Research vs. 159005 | ACM Research vs. Loctek Ergonomic 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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