Correlation Between GRINM Semiconductor and Beijing Mainstreets
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By analyzing existing cross correlation between GRINM Semiconductor Materials and Beijing Mainstreets Investment, you can compare the effects of market volatilities on GRINM Semiconductor and Beijing Mainstreets 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 Beijing Mainstreets. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRINM Semiconductor and Beijing Mainstreets.
Diversification Opportunities for GRINM Semiconductor and Beijing Mainstreets
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GRINM and Beijing is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding GRINM Semiconductor Materials and Beijing Mainstreets Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Mainstreets 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 Beijing Mainstreets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Mainstreets has no effect on the direction of GRINM Semiconductor i.e., GRINM Semiconductor and Beijing Mainstreets go up and down completely randomly.
Pair Corralation between GRINM Semiconductor and Beijing Mainstreets
Assuming the 90 days trading horizon GRINM Semiconductor Materials is expected to under-perform the Beijing Mainstreets. But the stock apears to be less risky and, when comparing its historical volatility, GRINM Semiconductor Materials is 1.21 times less risky than Beijing Mainstreets. The stock trades about -0.07 of its potential returns per unit of risk. The Beijing Mainstreets Investment is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 224.00 in Beijing Mainstreets Investment on August 28, 2024 and sell it today you would earn a total of 30.00 from holding Beijing Mainstreets Investment or generate 13.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRINM Semiconductor Materials vs. Beijing Mainstreets Investment
Performance |
| Timeline |
| GRINM Semiconductor |
| Beijing Mainstreets |
GRINM Semiconductor and Beijing Mainstreets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRINM Semiconductor and Beijing Mainstreets
The main advantage of trading using opposite GRINM Semiconductor and Beijing Mainstreets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRINM Semiconductor position performs unexpectedly, Beijing Mainstreets 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 Beijing Mainstreets will offset losses from the drop in Beijing Mainstreets' long position.| GRINM Semiconductor vs. V V Food | GRINM Semiconductor vs. Jiamei Food Packaging | GRINM Semiconductor vs. CIMC Vehicles Co | GRINM Semiconductor vs. Xiamen Jihong Package |
| Beijing Mainstreets vs. Bomesc Offshore Engineering | Beijing Mainstreets vs. Tongyu Communication | Beijing Mainstreets vs. Nanjing Putian Telecommunications | Beijing Mainstreets vs. Great Sun Foods 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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