Correlation Between GRINM Semiconductor and Guangdong Electric
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By analyzing existing cross correlation between GRINM Semiconductor Materials and Guangdong Electric Power, you can compare the effects of market volatilities on GRINM Semiconductor and Guangdong Electric 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 Guangdong Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRINM Semiconductor and Guangdong Electric.
Diversification Opportunities for GRINM Semiconductor and Guangdong Electric
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GRINM and Guangdong is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding GRINM Semiconductor Materials and Guangdong Electric Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Electric Power 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 Guangdong Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Electric Power has no effect on the direction of GRINM Semiconductor i.e., GRINM Semiconductor and Guangdong Electric go up and down completely randomly.
Pair Corralation between GRINM Semiconductor and Guangdong Electric
Assuming the 90 days trading horizon GRINM Semiconductor Materials is expected to under-perform the Guangdong Electric. In addition to that, GRINM Semiconductor is 3.04 times more volatile than Guangdong Electric Power. It trades about -0.02 of its total potential returns per unit of risk. Guangdong Electric Power is currently generating about -0.01 per unit of volatility. If you would invest 210.00 in Guangdong Electric Power on October 16, 2024 and sell it today you would lose (12.00) from holding Guangdong Electric Power or give up 5.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRINM Semiconductor Materials vs. Guangdong Electric Power
Performance |
| Timeline |
| GRINM Semiconductor |
| Guangdong Electric Power |
GRINM Semiconductor and Guangdong Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRINM Semiconductor and Guangdong Electric
The main advantage of trading using opposite GRINM Semiconductor and Guangdong Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRINM Semiconductor position performs unexpectedly, Guangdong Electric 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 Guangdong Electric will offset losses from the drop in Guangdong Electric's long position.| GRINM Semiconductor vs. Juewei Food Co | GRINM Semiconductor vs. Innovative Medical Management | GRINM Semiconductor vs. Sanbo Hospital Management | GRINM Semiconductor vs. Shanghai Rightongene Biotechnology |
| Guangdong Electric vs. Everdisplay Optronics Shanghai | Guangdong Electric vs. Lontium Semiconductor Corp | Guangdong Electric vs. GRINM Semiconductor Materials | Guangdong Electric vs. Chongqing Brewery 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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