Correlation Between GRINM Semiconductor and Tonghua Grape
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By analyzing existing cross correlation between GRINM Semiconductor Materials and Tonghua Grape Wine, you can compare the effects of market volatilities on GRINM Semiconductor and Tonghua Grape 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 Tonghua Grape. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRINM Semiconductor and Tonghua Grape.
Diversification Opportunities for GRINM Semiconductor and Tonghua Grape
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between GRINM and Tonghua is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding GRINM Semiconductor Materials and Tonghua Grape Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tonghua Grape Wine 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 Tonghua Grape. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tonghua Grape Wine has no effect on the direction of GRINM Semiconductor i.e., GRINM Semiconductor and Tonghua Grape go up and down completely randomly.
Pair Corralation between GRINM Semiconductor and Tonghua Grape
Assuming the 90 days trading horizon GRINM Semiconductor is expected to generate 291.78 times less return on investment than Tonghua Grape. In addition to that, GRINM Semiconductor is 1.61 times more volatile than Tonghua Grape Wine. It trades about 0.0 of its total potential returns per unit of risk. Tonghua Grape Wine is currently generating about 0.12 per unit of volatility. If you would invest 276.00 in Tonghua Grape Wine on September 1, 2024 and sell it today you would earn a total of 15.00 from holding Tonghua Grape Wine or generate 5.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRINM Semiconductor Materials vs. Tonghua Grape Wine
Performance |
| Timeline |
| GRINM Semiconductor |
| Tonghua Grape Wine |
GRINM Semiconductor and Tonghua Grape Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRINM Semiconductor and Tonghua Grape
The main advantage of trading using opposite GRINM Semiconductor and Tonghua Grape positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRINM Semiconductor position performs unexpectedly, Tonghua Grape 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 Tonghua Grape will offset losses from the drop in Tonghua Grape's long position.| GRINM Semiconductor vs. Industrial and Commercial | GRINM Semiconductor vs. Kweichow Moutai Co | GRINM Semiconductor vs. Agricultural Bank of | GRINM Semiconductor vs. China Mobile Limited |
| Tonghua Grape vs. China Petroleum Chemical | Tonghua Grape vs. PetroChina Co Ltd | Tonghua Grape vs. China State Construction | Tonghua Grape vs. China Railway Group |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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