Correlation Between GRINM Semiconductor and Sinomach Automobile
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By analyzing existing cross correlation between GRINM Semiconductor Materials and Sinomach Automobile Co, you can compare the effects of market volatilities on GRINM Semiconductor and Sinomach Automobile 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 Sinomach Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRINM Semiconductor and Sinomach Automobile.
Diversification Opportunities for GRINM Semiconductor and Sinomach Automobile
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GRINM and Sinomach is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding GRINM Semiconductor Materials and Sinomach Automobile Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinomach Automobile 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 Sinomach Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinomach Automobile has no effect on the direction of GRINM Semiconductor i.e., GRINM Semiconductor and Sinomach Automobile go up and down completely randomly.
Pair Corralation between GRINM Semiconductor and Sinomach Automobile
Assuming the 90 days trading horizon GRINM Semiconductor Materials is expected to under-perform the Sinomach Automobile. But the stock apears to be less risky and, when comparing its historical volatility, GRINM Semiconductor Materials is 1.42 times less risky than Sinomach Automobile. The stock trades about -0.23 of its potential returns per unit of risk. The Sinomach Automobile Co is currently generating about -0.13 of returns per unit of risk over similar time horizon. If you would invest 672.00 in Sinomach Automobile Co on October 17, 2024 and sell it today you would lose (66.00) from holding Sinomach Automobile Co or give up 9.82% 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. Sinomach Automobile Co
Performance |
| Timeline |
| GRINM Semiconductor |
| Sinomach Automobile |
GRINM Semiconductor and Sinomach Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRINM Semiconductor and Sinomach Automobile
The main advantage of trading using opposite GRINM Semiconductor and Sinomach Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRINM Semiconductor position performs unexpectedly, Sinomach Automobile 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 Sinomach Automobile will offset losses from the drop in Sinomach Automobile's long position.| GRINM Semiconductor vs. Dongguan Tarry Electronics | GRINM Semiconductor vs. Beijing Baolande Software | GRINM Semiconductor vs. Dareway Software Co | GRINM Semiconductor vs. Aurora Optoelectronics Co |
| Sinomach Automobile vs. GRINM Semiconductor Materials | Sinomach Automobile vs. Western Metal Materials | Sinomach Automobile vs. Tibet Huayu Mining | Sinomach Automobile vs. Shanghai V Test Semiconductor |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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