Correlation Between Shanghai Material and GRINM Semiconductor
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By analyzing existing cross correlation between Shanghai Material Trading and GRINM Semiconductor Materials, you can compare the effects of market volatilities on Shanghai Material 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 Shanghai Material with a short position of GRINM Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Material and GRINM Semiconductor.
Diversification Opportunities for Shanghai Material and GRINM Semiconductor
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shanghai and GRINM is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Material Trading and GRINM Semiconductor Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRINM Semiconductor and Shanghai Material 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 Shanghai Material Trading 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 Shanghai Material i.e., Shanghai Material and GRINM Semiconductor go up and down completely randomly.
Pair Corralation between Shanghai Material and GRINM Semiconductor
Assuming the 90 days trading horizon Shanghai Material Trading is expected to under-perform the GRINM Semiconductor. In addition to that, Shanghai Material is 1.74 times more volatile than GRINM Semiconductor Materials. It trades about -0.18 of its total potential returns per unit of risk. GRINM Semiconductor Materials is currently generating about -0.18 per unit of volatility. If you would invest 1,228 in GRINM Semiconductor Materials on October 30, 2024 and sell it today you would lose (168.00) from holding GRINM Semiconductor Materials or give up 13.68% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Shanghai Material Trading vs. GRINM Semiconductor Materials
Performance |
Timeline |
Shanghai Material Trading |
GRINM Semiconductor |
Shanghai Material and GRINM Semiconductor Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shanghai Material and GRINM Semiconductor
The main advantage of trading using opposite Shanghai Material and GRINM Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Material 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.Shanghai Material vs. Jinling Hotel Corp | Shanghai Material vs. Ningxia Younglight Chemicals | Shanghai Material vs. Shandong Polymer Biochemicals | Shanghai Material vs. Guocheng Mining Co |
GRINM Semiconductor vs. Lander Sports Development | GRINM Semiconductor vs. China Asset Management | GRINM Semiconductor vs. Mango Excellent Media | GRINM Semiconductor vs. Thinkingdom Media 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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