Correlation Between Nanjing Putian and Semiconductor Manufacturing
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Semiconductor Manufacturing Intl, you can compare the effects of market volatilities on Nanjing Putian and Semiconductor Manufacturing 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 Nanjing Putian with a short position of Semiconductor Manufacturing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Semiconductor Manufacturing.
Diversification Opportunities for Nanjing Putian and Semiconductor Manufacturing
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nanjing and Semiconductor is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Semiconductor Manufacturing In in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Semiconductor Manufacturing and Nanjing Putian 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 Nanjing Putian Telecommunications are associated (or correlated) with Semiconductor Manufacturing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Semiconductor Manufacturing has no effect on the direction of Nanjing Putian i.e., Nanjing Putian and Semiconductor Manufacturing go up and down completely randomly.
Pair Corralation between Nanjing Putian and Semiconductor Manufacturing
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to under-perform the Semiconductor Manufacturing. In addition to that, Nanjing Putian is 1.16 times more volatile than Semiconductor Manufacturing Intl. It trades about -0.2 of its total potential returns per unit of risk. Semiconductor Manufacturing Intl is currently generating about 0.11 per unit of volatility. If you would invest 8,717 in Semiconductor Manufacturing Intl on October 13, 2024 and sell it today you would earn a total of 601.00 from holding Semiconductor Manufacturing Intl or generate 6.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing Putian Telecommunicati vs. Semiconductor Manufacturing In
Performance |
| Timeline |
| Nanjing Putian Telec |
| Semiconductor Manufacturing |
Nanjing Putian and Semiconductor Manufacturing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Semiconductor Manufacturing
The main advantage of trading using opposite Nanjing Putian and Semiconductor Manufacturing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian position performs unexpectedly, Semiconductor Manufacturing 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 Semiconductor Manufacturing will offset losses from the drop in Semiconductor Manufacturing's long position.| Nanjing Putian vs. Sino Platinum Metals Co | Nanjing Putian vs. Western Metal Materials | Nanjing Putian vs. Jiaozuo Wanfang Aluminum | Nanjing Putian vs. Chongqing Shunbo Aluminum |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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