Correlation Between Fujian Wanchen and GRINM Semiconductor
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By analyzing existing cross correlation between Fujian Wanchen Biotechnology and GRINM Semiconductor Materials, you can compare the effects of market volatilities on Fujian Wanchen and GRINM 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 Fujian Wanchen with a short position of GRINM Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Wanchen and GRINM Semiconductor.
Diversification Opportunities for Fujian Wanchen and GRINM Semiconductor
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fujian and GRINM is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Wanchen Biotechnology and GRINM Semiconductor Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRINM Semiconductor and Fujian Wanchen 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 Fujian Wanchen Biotechnology are associated (or correlated) with GRINM Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRINM Semiconductor has no effect on the direction of Fujian Wanchen i.e., Fujian Wanchen and GRINM Semiconductor go up and down completely randomly.
Pair Corralation between Fujian Wanchen and GRINM Semiconductor
Assuming the 90 days trading horizon Fujian Wanchen Biotechnology is expected to generate 1.52 times more return on investment than GRINM Semiconductor. However, Fujian Wanchen is 1.52 times more volatile than GRINM Semiconductor Materials. It trades about -0.06 of its potential returns per unit of risk. GRINM Semiconductor Materials is currently generating about -0.45 per unit of risk. If you would invest 8,180 in Fujian Wanchen Biotechnology on October 12, 2024 and sell it today you would lose (352.00) from holding Fujian Wanchen Biotechnology or give up 4.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Wanchen Biotechnology vs. GRINM Semiconductor Materials
Performance |
| Timeline |
| Fujian Wanchen Biote |
| GRINM Semiconductor |
Fujian Wanchen and GRINM Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Wanchen and GRINM Semiconductor
The main advantage of trading using opposite Fujian Wanchen and GRINM Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Wanchen position performs unexpectedly, GRINM 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 GRINM Semiconductor will offset losses from the drop in GRINM Semiconductor's long position.| Fujian Wanchen vs. Xiwang Foodstuffs Co | Fujian Wanchen vs. HaiXin Foods Co | Fujian Wanchen vs. Eastroc Beverage Group | Fujian Wanchen vs. Gan Yuan Foods |
| GRINM Semiconductor vs. Pengxin International Mining | GRINM Semiconductor vs. Sichuan Fulin Transportation | GRINM Semiconductor vs. Tianjin Silvery Dragon | GRINM Semiconductor vs. Chenzhou Jingui Silver |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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