Correlation Between GRINM Semiconductor and Changshu Automotive
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By analyzing existing cross correlation between GRINM Semiconductor Materials and Changshu Automotive Trim, you can compare the effects of market volatilities on GRINM Semiconductor and Changshu Automotive 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 Changshu Automotive. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRINM Semiconductor and Changshu Automotive.
Diversification Opportunities for GRINM Semiconductor and Changshu Automotive
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between GRINM and Changshu is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding GRINM Semiconductor Materials and Changshu Automotive Trim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changshu Automotive Trim 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 Changshu Automotive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changshu Automotive Trim has no effect on the direction of GRINM Semiconductor i.e., GRINM Semiconductor and Changshu Automotive go up and down completely randomly.
Pair Corralation between GRINM Semiconductor and Changshu Automotive
Assuming the 90 days trading horizon GRINM Semiconductor is expected to generate 271.0 times less return on investment than Changshu Automotive. In addition to that, GRINM Semiconductor is 1.32 times more volatile than Changshu Automotive Trim. It trades about 0.0 of its total potential returns per unit of risk. Changshu Automotive Trim is currently generating about 0.09 per unit of volatility. If you would invest 1,379 in Changshu Automotive Trim on September 1, 2024 and sell it today you would earn a total of 69.00 from holding Changshu Automotive Trim or generate 5.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
GRINM Semiconductor Materials vs. Changshu Automotive Trim
Performance |
| Timeline |
| GRINM Semiconductor |
| Changshu Automotive Trim |
GRINM Semiconductor and Changshu Automotive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRINM Semiconductor and Changshu Automotive
The main advantage of trading using opposite GRINM Semiconductor and Changshu Automotive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRINM Semiconductor position performs unexpectedly, Changshu Automotive 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 Changshu Automotive will offset losses from the drop in Changshu Automotive'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 |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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