Correlation Between GRINM Semiconductor and Tongxing Environmental
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By analyzing existing cross correlation between GRINM Semiconductor Materials and Tongxing Environmental Protection, you can compare the effects of market volatilities on GRINM Semiconductor and Tongxing Environmental 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 Tongxing Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRINM Semiconductor and Tongxing Environmental.
Diversification Opportunities for GRINM Semiconductor and Tongxing Environmental
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GRINM and Tongxing is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding GRINM Semiconductor Materials and Tongxing Environmental Protect in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongxing Environmental 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 Tongxing Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tongxing Environmental has no effect on the direction of GRINM Semiconductor i.e., GRINM Semiconductor and Tongxing Environmental go up and down completely randomly.
Pair Corralation between GRINM Semiconductor and Tongxing Environmental
Assuming the 90 days trading horizon GRINM Semiconductor Materials is expected to under-perform the Tongxing Environmental. But the stock apears to be less risky and, when comparing its historical volatility, GRINM Semiconductor Materials is 1.46 times less risky than Tongxing Environmental. The stock trades about -0.01 of its potential returns per unit of risk. The Tongxing Environmental Protection is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 1,360 in Tongxing Environmental Protection on September 4, 2024 and sell it today you would earn a total of 264.00 from holding Tongxing Environmental Protection or generate 19.41% 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. Tongxing Environmental Protect
Performance |
| Timeline |
| GRINM Semiconductor |
| Tongxing Environmental |
GRINM Semiconductor and Tongxing Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRINM Semiconductor and Tongxing Environmental
The main advantage of trading using opposite GRINM Semiconductor and Tongxing Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRINM Semiconductor position performs unexpectedly, Tongxing Environmental 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 Tongxing Environmental will offset losses from the drop in Tongxing Environmental's long position.| GRINM Semiconductor vs. Cultural Investment Holdings | GRINM Semiconductor vs. Gome Telecom Equipment | GRINM Semiconductor vs. Bus Online Co | GRINM Semiconductor vs. Holitech Technology Co |
| Tongxing Environmental vs. Ming Yang Smart | Tongxing Environmental vs. 159681 | Tongxing Environmental vs. 159005 | Tongxing Environmental vs. 516220 |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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