Correlation Between Jiangsu Jinling and Semiconductor Manufacturing
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By analyzing existing cross correlation between Jiangsu Jinling Sports and Semiconductor Manufacturing Intl, you can compare the effects of market volatilities on Jiangsu Jinling and Semiconductor Manufacturing 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 Semiconductor Manufacturing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Jinling and Semiconductor Manufacturing.
Diversification Opportunities for Jiangsu Jinling and Semiconductor Manufacturing
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jiangsu and Semiconductor is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Jinling Sports and Semiconductor Manufacturing In in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Semiconductor Manufacturing 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 Semiconductor Manufacturing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Semiconductor Manufacturing has no effect on the direction of Jiangsu Jinling i.e., Jiangsu Jinling and Semiconductor Manufacturing go up and down completely randomly.
Pair Corralation between Jiangsu Jinling and Semiconductor Manufacturing
Assuming the 90 days trading horizon Jiangsu Jinling Sports is expected to under-perform the Semiconductor Manufacturing. In addition to that, Jiangsu Jinling is 1.13 times more volatile than Semiconductor Manufacturing Intl. It trades about -0.03 of its total potential returns per unit of risk. Semiconductor Manufacturing Intl is currently generating about -0.03 per unit of volatility. If you would invest 10,189 in Semiconductor Manufacturing Intl on November 7, 2024 and sell it today you would lose (795.00) from holding Semiconductor Manufacturing Intl or give up 7.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Jinling Sports vs. Semiconductor Manufacturing In
Performance |
| Timeline |
| Jiangsu Jinling Sports |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Semiconductor Manufacturing |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Jiangsu Jinling and Semiconductor Manufacturing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Jinling and Semiconductor Manufacturing
The main advantage of trading using opposite Jiangsu Jinling and Semiconductor Manufacturing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Jinling position performs unexpectedly, Semiconductor Manufacturing 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 Semiconductor Manufacturing will offset losses from the drop in Semiconductor Manufacturing's long position.The idea behind Jiangsu Jinling Sports and Semiconductor Manufacturing Intl 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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