Correlation Between Nexchip Semiconductor and Jinling Hotel
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By analyzing existing cross correlation between Nexchip Semiconductor Corp and Jinling Hotel Corp, you can compare the effects of market volatilities on Nexchip Semiconductor and Jinling Hotel 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 Nexchip Semiconductor with a short position of Jinling Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nexchip Semiconductor and Jinling Hotel.
Diversification Opportunities for Nexchip Semiconductor and Jinling Hotel
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nexchip and Jinling is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Nexchip Semiconductor Corp and Jinling Hotel Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinling Hotel Corp and Nexchip Semiconductor 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 Nexchip Semiconductor Corp are associated (or correlated) with Jinling Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinling Hotel Corp has no effect on the direction of Nexchip Semiconductor i.e., Nexchip Semiconductor and Jinling Hotel go up and down completely randomly.
Pair Corralation between Nexchip Semiconductor and Jinling Hotel
Assuming the 90 days trading horizon Nexchip Semiconductor Corp is expected to generate 1.27 times more return on investment than Jinling Hotel. However, Nexchip Semiconductor is 1.27 times more volatile than Jinling Hotel Corp. It trades about 0.06 of its potential returns per unit of risk. Jinling Hotel Corp is currently generating about -0.01 per unit of risk. If you would invest 1,651 in Nexchip Semiconductor Corp on August 25, 2024 and sell it today you would earn a total of 793.00 from holding Nexchip Semiconductor Corp or generate 48.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nexchip Semiconductor Corp vs. Jinling Hotel Corp
Performance |
| Timeline |
| Nexchip Semiconductor |
| Jinling Hotel Corp |
Nexchip Semiconductor and Jinling Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nexchip Semiconductor and Jinling Hotel
The main advantage of trading using opposite Nexchip Semiconductor and Jinling Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nexchip Semiconductor position performs unexpectedly, Jinling Hotel 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 Jinling Hotel will offset losses from the drop in Jinling Hotel's long position.| Nexchip Semiconductor vs. Lutian Machinery Co | Nexchip Semiconductor vs. China Longyuan Power | Nexchip Semiconductor vs. Changshu Tongrun Auto | Nexchip Semiconductor vs. PetroChina Co Ltd |
| Jinling Hotel vs. Ningbo Fangzheng Automobile | Jinling Hotel vs. Road Environment Technology | Jinling Hotel vs. Glodon Software Co | Jinling Hotel vs. Linewell Software 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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