Correlation Between Ye Chiu and Nexchip Semiconductor
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By analyzing existing cross correlation between Ye Chiu Metal and Nexchip Semiconductor Corp, you can compare the effects of market volatilities on Ye Chiu and Nexchip 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 Ye Chiu with a short position of Nexchip Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ye Chiu and Nexchip Semiconductor.
Diversification Opportunities for Ye Chiu and Nexchip Semiconductor
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 601388 and Nexchip is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Ye Chiu Metal and Nexchip Semiconductor Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexchip Semiconductor and Ye Chiu 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 Ye Chiu Metal are associated (or correlated) with Nexchip Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nexchip Semiconductor has no effect on the direction of Ye Chiu i.e., Ye Chiu and Nexchip Semiconductor go up and down completely randomly.
Pair Corralation between Ye Chiu and Nexchip Semiconductor
Assuming the 90 days trading horizon Ye Chiu is expected to generate 3.17 times less return on investment than Nexchip Semiconductor. In addition to that, Ye Chiu is 1.01 times more volatile than Nexchip Semiconductor Corp. It trades about 0.02 of its total potential returns per unit of risk. Nexchip Semiconductor Corp is currently generating about 0.07 per unit of volatility. If you would invest 1,526 in Nexchip Semiconductor Corp on October 22, 2024 and sell it today you would earn a total of 792.00 from holding Nexchip Semiconductor Corp or generate 51.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.55% |
| Values | Daily Returns |
Ye Chiu Metal vs. Nexchip Semiconductor Corp
Performance |
| Timeline |
| Ye Chiu Metal |
| Nexchip Semiconductor |
Ye Chiu and Nexchip Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ye Chiu and Nexchip Semiconductor
The main advantage of trading using opposite Ye Chiu and Nexchip Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ye Chiu position performs unexpectedly, Nexchip 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 Nexchip Semiconductor will offset losses from the drop in Nexchip Semiconductor's long position.| Ye Chiu vs. North Copper Shanxi | Ye Chiu vs. 360 Security Technology | Ye Chiu vs. Chengtun Mining Group | Ye Chiu vs. Kuangda Technology Group |
| Nexchip Semiconductor vs. Xiangyang Automobile Bearing | Nexchip Semiconductor vs. Changchun Engley Automobile | Nexchip Semiconductor vs. Shengda Mining Co | Nexchip Semiconductor vs. North Copper Shanxi |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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