Correlation Between GRINM Semiconductor and China Citic
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By analyzing existing cross correlation between GRINM Semiconductor Materials and China Citic Bank, you can compare the effects of market volatilities on GRINM Semiconductor and China Citic 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 China Citic. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRINM Semiconductor and China Citic.
Diversification Opportunities for GRINM Semiconductor and China Citic
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GRINM and China is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding GRINM Semiconductor Materials and China Citic Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Citic Bank 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 China Citic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Citic Bank has no effect on the direction of GRINM Semiconductor i.e., GRINM Semiconductor and China Citic go up and down completely randomly.
Pair Corralation between GRINM Semiconductor and China Citic
Assuming the 90 days trading horizon GRINM Semiconductor Materials is expected to under-perform the China Citic. In addition to that, GRINM Semiconductor is 2.04 times more volatile than China Citic Bank. It trades about -0.05 of its total potential returns per unit of risk. China Citic Bank is currently generating about 0.06 per unit of volatility. If you would invest 668.00 in China Citic Bank on September 3, 2024 and sell it today you would earn a total of 11.00 from holding China Citic Bank or generate 1.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRINM Semiconductor Materials vs. China Citic Bank
Performance |
| Timeline |
| GRINM Semiconductor |
| China Citic Bank |
GRINM Semiconductor and China Citic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRINM Semiconductor and China Citic
The main advantage of trading using opposite GRINM Semiconductor and China Citic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRINM Semiconductor position performs unexpectedly, China Citic 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 China Citic will offset losses from the drop in China Citic's long position.| GRINM Semiconductor vs. Agricultural Bank of | GRINM Semiconductor vs. China Construction Bank | GRINM Semiconductor vs. Postal Savings Bank | GRINM Semiconductor vs. Bank of Communications |
| China Citic vs. StarPower Semiconductor | China Citic vs. Integrated Electronic Systems | China Citic vs. GRINM Semiconductor Materials | China Citic vs. Techshine Electronics Co |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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