Correlation Between GRINM Semiconductor and Changchun BCHT
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By analyzing existing cross correlation between GRINM Semiconductor Materials and Changchun BCHT Biotechnology, you can compare the effects of market volatilities on GRINM Semiconductor and Changchun BCHT 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 Changchun BCHT. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRINM Semiconductor and Changchun BCHT.
Diversification Opportunities for GRINM Semiconductor and Changchun BCHT
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GRINM and Changchun is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding GRINM Semiconductor Materials and Changchun BCHT Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun BCHT Biote 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 Changchun BCHT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun BCHT Biote has no effect on the direction of GRINM Semiconductor i.e., GRINM Semiconductor and Changchun BCHT go up and down completely randomly.
Pair Corralation between GRINM Semiconductor and Changchun BCHT
Assuming the 90 days trading horizon GRINM Semiconductor Materials is expected to generate 0.97 times more return on investment than Changchun BCHT. However, GRINM Semiconductor Materials is 1.03 times less risky than Changchun BCHT. It trades about -0.03 of its potential returns per unit of risk. Changchun BCHT Biotechnology is currently generating about -0.07 per unit of risk. If you would invest 1,653 in GRINM Semiconductor Materials on October 12, 2024 and sell it today you would lose (618.00) from holding GRINM Semiconductor Materials or give up 37.39% 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. Changchun BCHT Biotechnology
Performance |
| Timeline |
| GRINM Semiconductor |
| Changchun BCHT Biote |
GRINM Semiconductor and Changchun BCHT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRINM Semiconductor and Changchun BCHT
The main advantage of trading using opposite GRINM Semiconductor and Changchun BCHT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRINM Semiconductor position performs unexpectedly, Changchun BCHT 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 Changchun BCHT will offset losses from the drop in Changchun BCHT's long position.| GRINM Semiconductor vs. Pengxin International Mining | GRINM Semiconductor vs. Sichuan Fulin Transportation | GRINM Semiconductor vs. Tianjin Silvery Dragon | GRINM Semiconductor vs. Chenzhou Jingui Silver |
| Changchun BCHT vs. Jiangsu Yueda Investment | Changchun BCHT vs. Beijing Mainstreets Investment | Changchun BCHT vs. Yunnan Jianzhijia Health Chain | Changchun BCHT vs. Humanwell Healthcare 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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