Correlation Between Gansu Yasheng and VeriSilicon Microelectronics
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By analyzing existing cross correlation between Gansu Yasheng Industrial and VeriSilicon Microelectronics Shanghai, you can compare the effects of market volatilities on Gansu Yasheng and VeriSilicon Microelectronics 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 Gansu Yasheng with a short position of VeriSilicon Microelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Yasheng and VeriSilicon Microelectronics.
Diversification Opportunities for Gansu Yasheng and VeriSilicon Microelectronics
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Gansu and VeriSilicon is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Yasheng Industrial and VeriSilicon Microelectronics S in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VeriSilicon Microelectronics and Gansu Yasheng 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 Gansu Yasheng Industrial are associated (or correlated) with VeriSilicon Microelectronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VeriSilicon Microelectronics has no effect on the direction of Gansu Yasheng i.e., Gansu Yasheng and VeriSilicon Microelectronics go up and down completely randomly.
Pair Corralation between Gansu Yasheng and VeriSilicon Microelectronics
Assuming the 90 days trading horizon Gansu Yasheng is expected to generate 3.07 times less return on investment than VeriSilicon Microelectronics. But when comparing it to its historical volatility, Gansu Yasheng Industrial is 2.52 times less risky than VeriSilicon Microelectronics. It trades about 0.08 of its potential returns per unit of risk. VeriSilicon Microelectronics Shanghai is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 3,251 in VeriSilicon Microelectronics Shanghai on September 1, 2024 and sell it today you would earn a total of 1,942 from holding VeriSilicon Microelectronics Shanghai or generate 59.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.19% |
| Values | Daily Returns |
Gansu Yasheng Industrial vs. VeriSilicon Microelectronics S
Performance |
| Timeline |
| Gansu Yasheng Industrial |
| VeriSilicon Microelectronics |
Gansu Yasheng and VeriSilicon Microelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Yasheng and VeriSilicon Microelectronics
The main advantage of trading using opposite Gansu Yasheng and VeriSilicon Microelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Yasheng position performs unexpectedly, VeriSilicon Microelectronics 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 VeriSilicon Microelectronics will offset losses from the drop in VeriSilicon Microelectronics' long position.| Gansu Yasheng vs. Beijing SPC Environment | Gansu Yasheng vs. Easyhome New Retail | Gansu Yasheng vs. Leyard Optoelectronic | Gansu Yasheng vs. Tianjin Capital Environmental |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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