Correlation Between GRINM Semiconductor and Ningbo David
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By analyzing existing cross correlation between GRINM Semiconductor Materials and Ningbo David Medical, you can compare the effects of market volatilities on GRINM Semiconductor and Ningbo David 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 Ningbo David. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRINM Semiconductor and Ningbo David.
Diversification Opportunities for GRINM Semiconductor and Ningbo David
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between GRINM and Ningbo is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding GRINM Semiconductor Materials and Ningbo David Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo David Medical 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 Ningbo David. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo David Medical has no effect on the direction of GRINM Semiconductor i.e., GRINM Semiconductor and Ningbo David go up and down completely randomly.
Pair Corralation between GRINM Semiconductor and Ningbo David
Assuming the 90 days trading horizon GRINM Semiconductor Materials is expected to under-perform the Ningbo David. But the stock apears to be less risky and, when comparing its historical volatility, GRINM Semiconductor Materials is 1.11 times less risky than Ningbo David. The stock trades about 0.0 of its potential returns per unit of risk. The Ningbo David Medical is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,323 in Ningbo David Medical on September 4, 2024 and sell it today you would lose (52.00) from holding Ningbo David Medical or give up 3.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRINM Semiconductor Materials vs. Ningbo David Medical
Performance |
| Timeline |
| GRINM Semiconductor |
| Ningbo David Medical |
GRINM Semiconductor and Ningbo David Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRINM Semiconductor and Ningbo David
The main advantage of trading using opposite GRINM Semiconductor and Ningbo David positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRINM Semiconductor position performs unexpectedly, Ningbo David 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 Ningbo David will offset losses from the drop in Ningbo David'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 |
| Ningbo David vs. MayAir Technology Co | Ningbo David vs. Hainan Mining Co | Ningbo David vs. Harbin Air Conditioning | Ningbo David vs. Shenzhen Topway Video |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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