Correlation Between Jilin Jlu and Nexchip Semiconductor
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By analyzing existing cross correlation between Jilin Jlu Communication and Nexchip Semiconductor Corp, you can compare the effects of market volatilities on Jilin Jlu and Nexchip 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 Jilin Jlu with a short position of Nexchip Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Jlu and Nexchip Semiconductor.
Diversification Opportunities for Jilin Jlu and Nexchip Semiconductor
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jilin and Nexchip is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Jlu Communication and Nexchip Semiconductor Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexchip Semiconductor and Jilin Jlu 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 Jilin Jlu Communication are associated (or correlated) with Nexchip Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nexchip Semiconductor has no effect on the direction of Jilin Jlu i.e., Jilin Jlu and Nexchip Semiconductor go up and down completely randomly.
Pair Corralation between Jilin Jlu and Nexchip Semiconductor
Assuming the 90 days trading horizon Jilin Jlu is expected to generate 1.57 times less return on investment than Nexchip Semiconductor. In addition to that, Jilin Jlu is 1.1 times more volatile than Nexchip Semiconductor Corp. It trades about 0.01 of its total potential returns per unit of risk. Nexchip Semiconductor Corp is currently generating about 0.02 per unit of volatility. If you would invest 1,986 in Nexchip Semiconductor Corp on October 12, 2024 and sell it today you would earn a total of 204.00 from holding Nexchip Semiconductor Corp or generate 10.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 86.79% |
| Values | Daily Returns |
Jilin Jlu Communication vs. Nexchip Semiconductor Corp
Performance |
| Timeline |
| Jilin Jlu Communication |
| Nexchip Semiconductor |
Jilin Jlu and Nexchip Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Jlu and Nexchip Semiconductor
The main advantage of trading using opposite Jilin Jlu and Nexchip Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Jlu position performs unexpectedly, Nexchip 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 Nexchip Semiconductor will offset losses from the drop in Nexchip Semiconductor's long position.| Jilin Jlu vs. Agricultural Bank of | Jilin Jlu vs. Industrial and Commercial | Jilin Jlu vs. Bank of China | Jilin Jlu 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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