Correlation Between GRINM Semiconductor and Anhui Fuhuang
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By analyzing existing cross correlation between GRINM Semiconductor Materials and Anhui Fuhuang Steel, you can compare the effects of market volatilities on GRINM Semiconductor and Anhui Fuhuang 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 Anhui Fuhuang. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRINM Semiconductor and Anhui Fuhuang.
Diversification Opportunities for GRINM Semiconductor and Anhui Fuhuang
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GRINM and Anhui is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding GRINM Semiconductor Materials and Anhui Fuhuang Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Fuhuang Steel 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 Anhui Fuhuang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Fuhuang Steel has no effect on the direction of GRINM Semiconductor i.e., GRINM Semiconductor and Anhui Fuhuang go up and down completely randomly.
Pair Corralation between GRINM Semiconductor and Anhui Fuhuang
Assuming the 90 days trading horizon GRINM Semiconductor is expected to generate 2.8 times less return on investment than Anhui Fuhuang. But when comparing it to its historical volatility, GRINM Semiconductor Materials is 1.03 times less risky than Anhui Fuhuang. It trades about 0.02 of its potential returns per unit of risk. Anhui Fuhuang Steel is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 568.00 in Anhui Fuhuang Steel on September 12, 2024 and sell it today you would earn a total of 199.00 from holding Anhui Fuhuang Steel or generate 35.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.58% |
| Values | Daily Returns |
GRINM Semiconductor Materials vs. Anhui Fuhuang Steel
Performance |
| Timeline |
| GRINM Semiconductor |
| Anhui Fuhuang Steel |
GRINM Semiconductor and Anhui Fuhuang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRINM Semiconductor and Anhui Fuhuang
The main advantage of trading using opposite GRINM Semiconductor and Anhui Fuhuang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRINM Semiconductor position performs unexpectedly, Anhui Fuhuang 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 Anhui Fuhuang will offset losses from the drop in Anhui Fuhuang's long position.| GRINM Semiconductor vs. Ye Chiu Metal | GRINM Semiconductor vs. Pengxin International Mining | GRINM Semiconductor vs. Guosheng Financial Holding | GRINM Semiconductor vs. Unisplendour Corp |
| Anhui Fuhuang vs. Healthcare Co | Anhui Fuhuang vs. Shanghai Rongtai Health | Anhui Fuhuang vs. Impulse Qingdao Health | Anhui Fuhuang vs. Yuan Longping High tech |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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