Correlation Between GRINM Semiconductor and Shaanxi Construction
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By analyzing existing cross correlation between GRINM Semiconductor Materials and Shaanxi Construction Machinery, you can compare the effects of market volatilities on GRINM Semiconductor and Shaanxi Construction 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 Shaanxi Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRINM Semiconductor and Shaanxi Construction.
Diversification Opportunities for GRINM Semiconductor and Shaanxi Construction
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GRINM and Shaanxi is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding GRINM Semiconductor Materials and Shaanxi Construction Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Construction 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 Shaanxi Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Construction has no effect on the direction of GRINM Semiconductor i.e., GRINM Semiconductor and Shaanxi Construction go up and down completely randomly.
Pair Corralation between GRINM Semiconductor and Shaanxi Construction
Assuming the 90 days trading horizon GRINM Semiconductor Materials is expected to generate 0.89 times more return on investment than Shaanxi Construction. However, GRINM Semiconductor Materials is 1.13 times less risky than Shaanxi Construction. It trades about -0.01 of its potential returns per unit of risk. Shaanxi Construction Machinery is currently generating about -0.03 per unit of risk. If you would invest 1,579 in GRINM Semiconductor Materials on October 29, 2024 and sell it today you would lose (519.00) from holding GRINM Semiconductor Materials or give up 32.87% 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. Shaanxi Construction Machinery
Performance |
| Timeline |
| GRINM Semiconductor |
| Shaanxi Construction |
GRINM Semiconductor and Shaanxi Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRINM Semiconductor and Shaanxi Construction
The main advantage of trading using opposite GRINM Semiconductor and Shaanxi Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRINM Semiconductor position performs unexpectedly, Shaanxi Construction 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 Shaanxi Construction will offset losses from the drop in Shaanxi Construction's long position.| GRINM Semiconductor vs. Lander Sports Development | GRINM Semiconductor vs. China Asset Management | GRINM Semiconductor vs. Mango Excellent Media | GRINM Semiconductor vs. Thinkingdom Media 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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