Correlation Between Xiamen East and GRINM Semiconductor
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By analyzing existing cross correlation between Xiamen East Asia and GRINM Semiconductor Materials, you can compare the effects of market volatilities on Xiamen East 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 Xiamen East with a short position of GRINM Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen East and GRINM Semiconductor.
Diversification Opportunities for Xiamen East and GRINM Semiconductor
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xiamen and GRINM is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen East Asia and GRINM Semiconductor Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRINM Semiconductor and Xiamen East 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 Xiamen East Asia 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 Xiamen East i.e., Xiamen East and GRINM Semiconductor go up and down completely randomly.
Pair Corralation between Xiamen East and GRINM Semiconductor
Assuming the 90 days trading horizon Xiamen East Asia is expected to generate 1.07 times more return on investment than GRINM Semiconductor. However, Xiamen East is 1.07 times more volatile than GRINM Semiconductor Materials. It trades about 0.02 of its potential returns per unit of risk. GRINM Semiconductor Materials is currently generating about 0.01 per unit of risk. If you would invest 1,084 in Xiamen East Asia on August 24, 2024 and sell it today you would earn a total of 27.00 from holding Xiamen East Asia or generate 2.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen East Asia vs. GRINM Semiconductor Materials
Performance |
| Timeline |
| Xiamen East Asia |
| GRINM Semiconductor |
Xiamen East and GRINM Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen East and GRINM Semiconductor
The main advantage of trading using opposite Xiamen East and GRINM Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen East 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.| Xiamen East vs. Chengtun Mining Group | Xiamen East vs. Anhui Deli Household | Xiamen East vs. Sichuan Yahua Industrial | Xiamen East vs. Offshore Oil Engineering |
| GRINM Semiconductor vs. Ming Yang Smart | GRINM Semiconductor vs. 159005 | GRINM Semiconductor vs. Loctek Ergonomic Technology | GRINM Semiconductor vs. Xiamen East Asia |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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