Correlation Between Gansu Jiu and GRINM Semiconductor
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By analyzing existing cross correlation between Gansu Jiu Steel and GRINM Semiconductor Materials, you can compare the effects of market volatilities on Gansu Jiu 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 Gansu Jiu with a short position of GRINM Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and GRINM Semiconductor.
Diversification Opportunities for Gansu Jiu and GRINM Semiconductor
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gansu and GRINM is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and GRINM Semiconductor Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRINM Semiconductor and Gansu Jiu 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 Jiu Steel 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 Gansu Jiu i.e., Gansu Jiu and GRINM Semiconductor go up and down completely randomly.
Pair Corralation between Gansu Jiu and GRINM Semiconductor
Assuming the 90 days trading horizon Gansu Jiu Steel is expected to generate 1.33 times more return on investment than GRINM Semiconductor. However, Gansu Jiu is 1.33 times more volatile than GRINM Semiconductor Materials. It trades about 0.2 of its potential returns per unit of risk. GRINM Semiconductor Materials is currently generating about 0.05 per unit of risk. If you would invest 140.00 in Gansu Jiu Steel on September 13, 2024 and sell it today you would earn a total of 53.00 from holding Gansu Jiu Steel or generate 37.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Jiu Steel vs. GRINM Semiconductor Materials
Performance |
| Timeline |
| Gansu Jiu Steel |
| GRINM Semiconductor |
Gansu Jiu and GRINM Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and GRINM Semiconductor
The main advantage of trading using opposite Gansu Jiu and GRINM Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu 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.| Gansu Jiu vs. China Construction Bank | Gansu Jiu vs. Industrial Bank Co | Gansu Jiu vs. Gansu Huangtai Wine marketing | Gansu Jiu vs. Guosheng Financial Holding |
| GRINM Semiconductor vs. Ye Chiu Metal | GRINM Semiconductor vs. Pengxin International Mining | GRINM Semiconductor vs. Guosheng Financial Holding | GRINM Semiconductor vs. Unisplendour Corp |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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