Correlation Between Shandong Ruifeng and GRINM Semiconductor
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By analyzing existing cross correlation between Shandong Ruifeng Chemical and GRINM Semiconductor Materials, you can compare the effects of market volatilities on Shandong Ruifeng 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 Shandong Ruifeng with a short position of GRINM Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Ruifeng and GRINM Semiconductor.
Diversification Opportunities for Shandong Ruifeng and GRINM Semiconductor
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shandong and GRINM is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Ruifeng Chemical and GRINM Semiconductor Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRINM Semiconductor and Shandong Ruifeng 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 Shandong Ruifeng Chemical 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 Shandong Ruifeng i.e., Shandong Ruifeng and GRINM Semiconductor go up and down completely randomly.
Pair Corralation between Shandong Ruifeng and GRINM Semiconductor
Assuming the 90 days trading horizon Shandong Ruifeng Chemical is expected to generate 1.41 times more return on investment than GRINM Semiconductor. However, Shandong Ruifeng is 1.41 times more volatile than GRINM Semiconductor Materials. It trades about 0.05 of its potential returns per unit of risk. GRINM Semiconductor Materials is currently generating about 0.0 per unit of risk. If you would invest 954.00 in Shandong Ruifeng Chemical on August 25, 2024 and sell it today you would earn a total of 304.00 from holding Shandong Ruifeng Chemical or generate 31.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Ruifeng Chemical vs. GRINM Semiconductor Materials
Performance |
| Timeline |
| Shandong Ruifeng Chemical |
| GRINM Semiconductor |
Shandong Ruifeng and GRINM Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Ruifeng and GRINM Semiconductor
The main advantage of trading using opposite Shandong Ruifeng and GRINM Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Ruifeng 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.| Shandong Ruifeng vs. Dalian Thermal Power | Shandong Ruifeng vs. Shandong Mining Machinery | Shandong Ruifeng vs. Changjiang Publishing Media | Shandong Ruifeng vs. Guangzhou Restaurants Group |
| GRINM Semiconductor vs. Lutian Machinery Co | GRINM Semiconductor vs. China Longyuan Power | GRINM Semiconductor vs. Changshu Tongrun Auto | GRINM Semiconductor vs. PetroChina Co Ltd |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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