Correlation Between Ingenic Semiconductor and Jiangsu Jinling
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ingenic Semiconductor and Jiangsu Jinling Sports, you can compare the effects of market volatilities on Ingenic Semiconductor and Jiangsu Jinling 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 Jiangsu Jinling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ingenic Semiconductor and Jiangsu Jinling.
Diversification Opportunities for Ingenic Semiconductor and Jiangsu Jinling
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ingenic and Jiangsu is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Ingenic Semiconductor and Jiangsu Jinling Sports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Jinling Sports 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 Jiangsu Jinling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Jinling Sports has no effect on the direction of Ingenic Semiconductor i.e., Ingenic Semiconductor and Jiangsu Jinling go up and down completely randomly.
Pair Corralation between Ingenic Semiconductor and Jiangsu Jinling
Assuming the 90 days trading horizon Ingenic Semiconductor is expected to under-perform the Jiangsu Jinling. But the stock apears to be less risky and, when comparing its historical volatility, Ingenic Semiconductor is 1.1 times less risky than Jiangsu Jinling. The stock trades about -0.07 of its potential returns per unit of risk. The Jiangsu Jinling Sports is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 1,412 in Jiangsu Jinling Sports on November 7, 2024 and sell it today you would lose (127.00) from holding Jiangsu Jinling Sports or give up 8.99% 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. Jiangsu Jinling Sports
Performance |
| Timeline |
| Ingenic Semiconductor |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Jiangsu Jinling Sports |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ingenic Semiconductor and Jiangsu Jinling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ingenic Semiconductor and Jiangsu Jinling
The main advantage of trading using opposite Ingenic Semiconductor and Jiangsu Jinling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ingenic Semiconductor position performs unexpectedly, Jiangsu Jinling 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 Jiangsu Jinling will offset losses from the drop in Jiangsu Jinling's long position.The idea behind Ingenic Semiconductor and Jiangsu Jinling Sports 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.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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |