Correlation Between Beijing Baolande and GRINM Semiconductor
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By analyzing existing cross correlation between Beijing Baolande Software and GRINM Semiconductor Materials, you can compare the effects of market volatilities on Beijing Baolande 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 Beijing Baolande with a short position of GRINM Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Baolande and GRINM Semiconductor.
Diversification Opportunities for Beijing Baolande and GRINM Semiconductor
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Beijing and GRINM is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Baolande Software and GRINM Semiconductor Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRINM Semiconductor and Beijing Baolande 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 Beijing Baolande Software 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 Beijing Baolande i.e., Beijing Baolande and GRINM Semiconductor go up and down completely randomly.
Pair Corralation between Beijing Baolande and GRINM Semiconductor
Assuming the 90 days trading horizon Beijing Baolande Software is expected to generate 1.75 times more return on investment than GRINM Semiconductor. However, Beijing Baolande is 1.75 times more volatile than GRINM Semiconductor Materials. It trades about -0.07 of its potential returns per unit of risk. GRINM Semiconductor Materials is currently generating about -0.23 per unit of risk. If you would invest 2,889 in Beijing Baolande Software on October 18, 2024 and sell it today you would lose (219.00) from holding Beijing Baolande Software or give up 7.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Baolande Software vs. GRINM Semiconductor Materials
Performance |
| Timeline |
| Beijing Baolande Software |
| GRINM Semiconductor |
Beijing Baolande and GRINM Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Baolande and GRINM Semiconductor
The main advantage of trading using opposite Beijing Baolande and GRINM Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Baolande 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.| Beijing Baolande vs. CareRay Digital Medical | Beijing Baolande vs. Tinavi Medical Technologies | Beijing Baolande vs. Shuhua Sports Co | Beijing Baolande vs. Hengkang Medical Group |
| GRINM Semiconductor vs. Dongguan Tarry Electronics | GRINM Semiconductor vs. Beijing Baolande Software | GRINM Semiconductor vs. Dareway Software Co | GRINM Semiconductor vs. Aurora Optoelectronics Co |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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