Correlation Between Jiangsu Jinling and Giantec Semiconductor
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By analyzing existing cross correlation between Jiangsu Jinling Sports and Giantec Semiconductor Corp, you can compare the effects of market volatilities on Jiangsu Jinling and Giantec 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 Giantec Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Jinling and Giantec Semiconductor.
Diversification Opportunities for Jiangsu Jinling and Giantec Semiconductor
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jiangsu and Giantec is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Jinling Sports and Giantec Semiconductor Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Giantec 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 Giantec Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Giantec Semiconductor has no effect on the direction of Jiangsu Jinling i.e., Jiangsu Jinling and Giantec Semiconductor go up and down completely randomly.
Pair Corralation between Jiangsu Jinling and Giantec Semiconductor
Assuming the 90 days trading horizon Jiangsu Jinling Sports is expected to under-perform the Giantec Semiconductor. But the stock apears to be less risky and, when comparing its historical volatility, Jiangsu Jinling Sports is 1.19 times less risky than Giantec Semiconductor. The stock trades about -0.03 of its potential returns per unit of risk. The Giantec Semiconductor Corp is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 6,100 in Giantec Semiconductor Corp on November 7, 2024 and sell it today you would earn a total of 764.00 from holding Giantec Semiconductor Corp or generate 12.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Jinling Sports vs. Giantec Semiconductor Corp
Performance |
| Timeline |
| Jiangsu Jinling Sports |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Giantec Semiconductor |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
Jiangsu Jinling and Giantec Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Jinling and Giantec Semiconductor
The main advantage of trading using opposite Jiangsu Jinling and Giantec Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Jinling position performs unexpectedly, Giantec 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 Giantec Semiconductor will offset losses from the drop in Giantec Semiconductor's long position.The idea behind Jiangsu Jinling Sports and Giantec Semiconductor Corp 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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