Correlation Between Shanghai Rongtai and Yuanjie Semiconductor
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By analyzing existing cross correlation between Shanghai Rongtai Health and Yuanjie Semiconductor Technology, you can compare the effects of market volatilities on Shanghai Rongtai 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 Shanghai Rongtai with a short position of Yuanjie Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Rongtai and Yuanjie Semiconductor.
Diversification Opportunities for Shanghai Rongtai and Yuanjie Semiconductor
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shanghai and Yuanjie is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Rongtai Health and Yuanjie Semiconductor Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yuanjie Semiconductor and Shanghai Rongtai 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 Rongtai Health 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 Shanghai Rongtai i.e., Shanghai Rongtai and Yuanjie Semiconductor go up and down completely randomly.
Pair Corralation between Shanghai Rongtai and Yuanjie Semiconductor
Assuming the 90 days trading horizon Shanghai Rongtai is expected to generate 2.81 times less return on investment than Yuanjie Semiconductor. But when comparing it to its historical volatility, Shanghai Rongtai Health is 2.03 times less risky than Yuanjie Semiconductor. It trades about 0.1 of its potential returns per unit of risk. Yuanjie Semiconductor Technology is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 8,997 in Yuanjie Semiconductor Technology on October 18, 2024 and sell it today you would earn a total of 5,390 from holding Yuanjie Semiconductor Technology or generate 59.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Rongtai Health vs. Yuanjie Semiconductor Technolo
Performance |
| Timeline |
| Shanghai Rongtai Health |
| Yuanjie Semiconductor |
Shanghai Rongtai and Yuanjie Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Rongtai and Yuanjie Semiconductor
The main advantage of trading using opposite Shanghai Rongtai and Yuanjie Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Rongtai 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.| Shanghai Rongtai vs. Rising Nonferrous Metals | Shanghai Rongtai vs. China Eastern Airlines | Shanghai Rongtai vs. HUAQIN TECHNOLOGY LTD | Shanghai Rongtai vs. Xinjiang Baodi Mining |
| Yuanjie Semiconductor vs. Lotus Health Group | Yuanjie Semiconductor vs. Ziel Home Furnishing | Yuanjie Semiconductor vs. Mingchen Health Co | Yuanjie Semiconductor vs. Shanghai Rongtai Health |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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