Correlation Between Guangdong Electric and GRINM Semiconductor
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By analyzing existing cross correlation between Guangdong Electric Power and GRINM Semiconductor Materials, you can compare the effects of market volatilities on Guangdong Electric and GRINM 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 Electric with a short position of GRINM Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Electric and GRINM Semiconductor.
Diversification Opportunities for Guangdong Electric and GRINM Semiconductor
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangdong and GRINM is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Electric Power and GRINM Semiconductor Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRINM Semiconductor and Guangdong Electric 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 Electric Power are associated (or correlated) with GRINM Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRINM Semiconductor has no effect on the direction of Guangdong Electric i.e., Guangdong Electric and GRINM Semiconductor go up and down completely randomly.
Pair Corralation between Guangdong Electric and GRINM Semiconductor
Assuming the 90 days trading horizon Guangdong Electric Power is expected to generate 0.33 times more return on investment than GRINM Semiconductor. However, Guangdong Electric Power is 3.04 times less risky than GRINM Semiconductor. It trades about -0.01 of its potential returns per unit of risk. GRINM Semiconductor Materials is currently generating about -0.02 per unit of risk. If you would invest 210.00 in Guangdong Electric Power on October 16, 2024 and sell it today you would lose (12.00) from holding Guangdong Electric Power or give up 5.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Electric Power vs. GRINM Semiconductor Materials
Performance |
| Timeline |
| Guangdong Electric Power |
| GRINM Semiconductor |
Guangdong Electric and GRINM Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Electric and GRINM Semiconductor
The main advantage of trading using opposite Guangdong Electric and GRINM Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Electric position performs unexpectedly, GRINM 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 GRINM Semiconductor will offset losses from the drop in GRINM Semiconductor's long position.| Guangdong Electric vs. Everdisplay Optronics Shanghai | Guangdong Electric vs. Lontium Semiconductor Corp | Guangdong Electric vs. GRINM Semiconductor Materials | Guangdong Electric vs. Chongqing Brewery Co |
| GRINM Semiconductor vs. Juewei Food Co | GRINM Semiconductor vs. Innovative Medical Management | GRINM Semiconductor vs. Sanbo Hospital Management | GRINM Semiconductor vs. Shanghai Rightongene Biotechnology |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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