Correlation Between GRINM Semiconductor and Fujian Newland
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By analyzing existing cross correlation between GRINM Semiconductor Materials and Fujian Newland Computer, you can compare the effects of market volatilities on GRINM Semiconductor and Fujian Newland 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 Fujian Newland. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRINM Semiconductor and Fujian Newland.
Diversification Opportunities for GRINM Semiconductor and Fujian Newland
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GRINM and Fujian is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding GRINM Semiconductor Materials and Fujian Newland Computer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Newland Computer 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 Fujian Newland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Newland Computer has no effect on the direction of GRINM Semiconductor i.e., GRINM Semiconductor and Fujian Newland go up and down completely randomly.
Pair Corralation between GRINM Semiconductor and Fujian Newland
Assuming the 90 days trading horizon GRINM Semiconductor Materials is expected to under-perform the Fujian Newland. But the stock apears to be less risky and, when comparing its historical volatility, GRINM Semiconductor Materials is 1.21 times less risky than Fujian Newland. The stock trades about -0.18 of its potential returns per unit of risk. The Fujian Newland Computer is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 2,137 in Fujian Newland Computer on October 30, 2024 and sell it today you would lose (147.00) from holding Fujian Newland Computer or give up 6.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRINM Semiconductor Materials vs. Fujian Newland Computer
Performance |
| Timeline |
| GRINM Semiconductor |
| Fujian Newland Computer |
GRINM Semiconductor and Fujian Newland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRINM Semiconductor and Fujian Newland
The main advantage of trading using opposite GRINM Semiconductor and Fujian Newland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRINM Semiconductor position performs unexpectedly, Fujian Newland 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 Fujian Newland will offset losses from the drop in Fujian Newland's long position.| GRINM Semiconductor vs. Lander Sports Development | GRINM Semiconductor vs. China Asset Management | GRINM Semiconductor vs. Mango Excellent Media | GRINM Semiconductor vs. Thinkingdom Media Group |
| Fujian Newland vs. Shandong Rike Chemical | Fujian Newland vs. Guizhou Chanhen Chemical | Fujian Newland vs. Shanghai Yanpu Metal | Fujian Newland vs. Kingclean Electric 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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