Correlation Between Ingenic Semiconductor and Jinhe Biotechnology
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By analyzing existing cross correlation between Ingenic Semiconductor and Jinhe Biotechnology Co, you can compare the effects of market volatilities on Ingenic Semiconductor and Jinhe Biotechnology 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 Ingenic Semiconductor with a short position of Jinhe Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ingenic Semiconductor and Jinhe Biotechnology.
Diversification Opportunities for Ingenic Semiconductor and Jinhe Biotechnology
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ingenic and Jinhe is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Ingenic Semiconductor and Jinhe Biotechnology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhe Biotechnology and Ingenic Semiconductor 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 Ingenic Semiconductor are associated (or correlated) with Jinhe Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinhe Biotechnology has no effect on the direction of Ingenic Semiconductor i.e., Ingenic Semiconductor and Jinhe Biotechnology go up and down completely randomly.
Pair Corralation between Ingenic Semiconductor and Jinhe Biotechnology
Assuming the 90 days trading horizon Ingenic Semiconductor is expected to under-perform the Jinhe Biotechnology. But the stock apears to be less risky and, when comparing its historical volatility, Ingenic Semiconductor is 1.13 times less risky than Jinhe Biotechnology. The stock trades about -0.2 of its potential returns per unit of risk. The Jinhe Biotechnology Co is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 486.00 in Jinhe Biotechnology Co on October 20, 2024 and sell it today you would lose (27.00) from holding Jinhe Biotechnology Co or give up 5.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ingenic Semiconductor vs. Jinhe Biotechnology Co
Performance |
| Timeline |
| Ingenic Semiconductor |
| Jinhe Biotechnology |
Ingenic Semiconductor and Jinhe Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ingenic Semiconductor and Jinhe Biotechnology
The main advantage of trading using opposite Ingenic Semiconductor and Jinhe Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ingenic Semiconductor position performs unexpectedly, Jinhe Biotechnology 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 Jinhe Biotechnology will offset losses from the drop in Jinhe Biotechnology's long position.The idea behind Ingenic Semiconductor and Jinhe Biotechnology Co 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.
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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