Correlation Between GRINM Semiconductor and Jinling Hotel
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By analyzing existing cross correlation between GRINM Semiconductor Materials and Jinling Hotel Corp, you can compare the effects of market volatilities on GRINM Semiconductor and Jinling Hotel 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 Jinling Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRINM Semiconductor and Jinling Hotel.
Diversification Opportunities for GRINM Semiconductor and Jinling Hotel
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GRINM and Jinling is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding GRINM Semiconductor Materials and Jinling Hotel Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinling Hotel Corp 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 Jinling Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinling Hotel Corp has no effect on the direction of GRINM Semiconductor i.e., GRINM Semiconductor and Jinling Hotel go up and down completely randomly.
Pair Corralation between GRINM Semiconductor and Jinling Hotel
Assuming the 90 days trading horizon GRINM Semiconductor is expected to generate 1.87 times less return on investment than Jinling Hotel. In addition to that, GRINM Semiconductor is 1.22 times more volatile than Jinling Hotel Corp. It trades about 0.05 of its total potential returns per unit of risk. Jinling Hotel Corp is currently generating about 0.11 per unit of volatility. If you would invest 650.00 in Jinling Hotel Corp on November 7, 2024 and sell it today you would earn a total of 16.00 from holding Jinling Hotel Corp or generate 2.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRINM Semiconductor Materials vs. Jinling Hotel Corp
Performance |
| Timeline |
| GRINM Semiconductor |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Jinling Hotel Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GRINM Semiconductor and Jinling Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRINM Semiconductor and Jinling Hotel
The main advantage of trading using opposite GRINM Semiconductor and Jinling Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRINM Semiconductor position performs unexpectedly, Jinling Hotel 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 Jinling Hotel will offset losses from the drop in Jinling Hotel's long position.The idea behind GRINM Semiconductor Materials and Jinling Hotel Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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