Correlation Between Gansu Jiu and Yuanjie Semiconductor
Specify exactly 2 symbols:
By analyzing existing cross correlation between Gansu Jiu Steel and Yuanjie Semiconductor Technology, you can compare the effects of market volatilities on Gansu Jiu and Yuanjie 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 Yuanjie Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and Yuanjie Semiconductor.
Diversification Opportunities for Gansu Jiu and Yuanjie Semiconductor
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gansu and Yuanjie is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and Yuanjie Semiconductor Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yuanjie 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 Yuanjie Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yuanjie Semiconductor has no effect on the direction of Gansu Jiu i.e., Gansu Jiu and Yuanjie Semiconductor go up and down completely randomly.
Pair Corralation between Gansu Jiu and Yuanjie Semiconductor
Assuming the 90 days trading horizon Gansu Jiu is expected to generate 1.04 times less return on investment than Yuanjie Semiconductor. But when comparing it to its historical volatility, Gansu Jiu Steel is 2.39 times less risky than Yuanjie Semiconductor. It trades about 0.03 of its potential returns per unit of risk. Yuanjie Semiconductor Technology is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 17,587 in Yuanjie Semiconductor Technology on September 12, 2024 and sell it today you would lose (3,407) from holding Yuanjie Semiconductor Technology or give up 19.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Jiu Steel vs. Yuanjie Semiconductor Technolo
Performance |
| Timeline |
| Gansu Jiu Steel |
| Yuanjie Semiconductor |
Gansu Jiu and Yuanjie Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and Yuanjie Semiconductor
The main advantage of trading using opposite Gansu Jiu and Yuanjie Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu position performs unexpectedly, Yuanjie 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 Yuanjie Semiconductor will offset losses from the drop in Yuanjie Semiconductor's long position.| Gansu Jiu vs. Zijin Mining Group | Gansu Jiu vs. Wanhua Chemical Group | Gansu Jiu vs. Baoshan Iron Steel | Gansu Jiu vs. Rongsheng Petrochemical Co |
| Yuanjie Semiconductor vs. Gansu Jiu Steel | Yuanjie Semiconductor vs. Shandong Mining Machinery | Yuanjie Semiconductor vs. Aba Chemicals Corp | Yuanjie Semiconductor vs. BlueFocus Communication Group |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |