Correlation Between Jiangsu Jinling and Shannon Semiconductor
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By analyzing existing cross correlation between Jiangsu Jinling Sports and Shannon Semiconductor Technology, you can compare the effects of market volatilities on Jiangsu Jinling and Shannon 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 Jiangsu Jinling with a short position of Shannon Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Jinling and Shannon Semiconductor.
Diversification Opportunities for Jiangsu Jinling and Shannon Semiconductor
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jiangsu and Shannon is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Jinling Sports and Shannon Semiconductor Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shannon Semiconductor and Jiangsu Jinling 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 Jiangsu Jinling Sports are associated (or correlated) with Shannon Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shannon Semiconductor has no effect on the direction of Jiangsu Jinling i.e., Jiangsu Jinling and Shannon Semiconductor go up and down completely randomly.
Pair Corralation between Jiangsu Jinling and Shannon Semiconductor
Assuming the 90 days trading horizon Jiangsu Jinling Sports is expected to generate 1.1 times more return on investment than Shannon Semiconductor. However, Jiangsu Jinling is 1.1 times more volatile than Shannon Semiconductor Technology. It trades about -0.05 of its potential returns per unit of risk. Shannon Semiconductor Technology is currently generating about -0.07 per unit of risk. If you would invest 1,332 in Jiangsu Jinling Sports on October 28, 2024 and sell it today you would lose (42.00) from holding Jiangsu Jinling Sports or give up 3.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Jinling Sports vs. Shannon Semiconductor Technolo
Performance |
| Timeline |
| Jiangsu Jinling Sports |
| Shannon Semiconductor |
Jiangsu Jinling and Shannon Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Jinling and Shannon Semiconductor
The main advantage of trading using opposite Jiangsu Jinling and Shannon Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Jinling position performs unexpectedly, Shannon 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 Shannon Semiconductor will offset losses from the drop in Shannon Semiconductor's long position.| Jiangsu Jinling vs. Ming Yang Smart | Jiangsu Jinling vs. 159681 | Jiangsu Jinling vs. 159005 | Jiangsu Jinling vs. Loctek Ergonomic Technology |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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