Correlation Between Aba Chemicals and Yuanjie Semiconductor
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By analyzing existing cross correlation between Aba Chemicals Corp and Yuanjie Semiconductor Technology, you can compare the effects of market volatilities on Aba Chemicals and Yuanjie 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 Aba Chemicals with a short position of Yuanjie Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aba Chemicals and Yuanjie Semiconductor.
Diversification Opportunities for Aba Chemicals and Yuanjie Semiconductor
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aba and Yuanjie is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Aba Chemicals Corp and Yuanjie Semiconductor Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yuanjie Semiconductor and Aba Chemicals 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 Aba Chemicals Corp are associated (or correlated) with Yuanjie Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yuanjie Semiconductor has no effect on the direction of Aba Chemicals i.e., Aba Chemicals and Yuanjie Semiconductor go up and down completely randomly.
Pair Corralation between Aba Chemicals and Yuanjie Semiconductor
Assuming the 90 days trading horizon Aba Chemicals Corp is expected to generate 0.66 times more return on investment than Yuanjie Semiconductor. However, Aba Chemicals Corp is 1.51 times less risky than Yuanjie Semiconductor. It trades about -0.1 of its potential returns per unit of risk. Yuanjie Semiconductor Technology is currently generating about -0.14 per unit of risk. If you would invest 877.00 in Aba Chemicals Corp on September 12, 2024 and sell it today you would lose (63.00) from holding Aba Chemicals Corp or give up 7.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aba Chemicals Corp vs. Yuanjie Semiconductor Technolo
Performance |
| Timeline |
| Aba Chemicals Corp |
| Yuanjie Semiconductor |
Aba Chemicals and Yuanjie Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aba Chemicals and Yuanjie Semiconductor
The main advantage of trading using opposite Aba Chemicals and Yuanjie Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aba Chemicals position performs unexpectedly, Yuanjie 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 Yuanjie Semiconductor will offset losses from the drop in Yuanjie Semiconductor's long position.| Aba Chemicals vs. Semiconductor Manufacturing Electronics | Aba Chemicals vs. GigaDevice SemiconductorBeiji | Aba Chemicals vs. Qinghaihuading Industrial Co | Aba Chemicals vs. MayAir Technology Co |
| Yuanjie Semiconductor vs. Gansu Jiu Steel | Yuanjie Semiconductor vs. Shandong Mining Machinery | Yuanjie Semiconductor vs. Aba Chemicals Corp | Yuanjie Semiconductor vs. BlueFocus Communication Group |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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