Correlation Between GRINM Semiconductor and North Huajin
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By analyzing existing cross correlation between GRINM Semiconductor Materials and North Huajin Chemical, you can compare the effects of market volatilities on GRINM Semiconductor and North Huajin 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 GRINM Semiconductor with a short position of North Huajin. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRINM Semiconductor and North Huajin.
Diversification Opportunities for GRINM Semiconductor and North Huajin
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between GRINM and North is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding GRINM Semiconductor Materials and North Huajin Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on North Huajin Chemical and GRINM 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 GRINM Semiconductor Materials are associated (or correlated) with North Huajin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of North Huajin Chemical has no effect on the direction of GRINM Semiconductor i.e., GRINM Semiconductor and North Huajin go up and down completely randomly.
Pair Corralation between GRINM Semiconductor and North Huajin
Assuming the 90 days trading horizon GRINM Semiconductor Materials is expected to generate 1.17 times more return on investment than North Huajin. However, GRINM Semiconductor is 1.17 times more volatile than North Huajin Chemical. It trades about -0.01 of its potential returns per unit of risk. North Huajin Chemical is currently generating about -0.02 per unit of risk. If you would invest 1,590 in GRINM Semiconductor Materials on August 29, 2024 and sell it today you would lose (424.00) from holding GRINM Semiconductor Materials or give up 26.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRINM Semiconductor Materials vs. North Huajin Chemical
Performance |
| Timeline |
| GRINM Semiconductor |
| North Huajin Chemical |
GRINM Semiconductor and North Huajin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRINM Semiconductor and North Huajin
The main advantage of trading using opposite GRINM Semiconductor and North Huajin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRINM Semiconductor position performs unexpectedly, North Huajin 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 North Huajin will offset losses from the drop in North Huajin's long position.| GRINM Semiconductor vs. China State Construction | GRINM Semiconductor vs. Huafa Industrial Co | GRINM Semiconductor vs. China International Capital | GRINM Semiconductor vs. Kweichow Moutai Co |
| North Huajin vs. Zijin Mining Group | North Huajin vs. Wanhua Chemical Group | North Huajin vs. Baoshan Iron Steel | North Huajin vs. Shandong Gold Mining |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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