Correlation Between Semiconductor Manufacturing and Jiangsu Jiejie
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By analyzing existing cross correlation between Semiconductor Manufacturing Electronics and Jiangsu Jiejie Microelectronics, you can compare the effects of market volatilities on Semiconductor Manufacturing and Jiangsu Jiejie 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 Semiconductor Manufacturing with a short position of Jiangsu Jiejie. Check out your portfolio center. Please also check ongoing floating volatility patterns of Semiconductor Manufacturing and Jiangsu Jiejie.
Diversification Opportunities for Semiconductor Manufacturing and Jiangsu Jiejie
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Semiconductor and Jiangsu is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Semiconductor Manufacturing El and Jiangsu Jiejie Microelectronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Jiejie Micro and Semiconductor Manufacturing 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 Semiconductor Manufacturing Electronics are associated (or correlated) with Jiangsu Jiejie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Jiejie Micro has no effect on the direction of Semiconductor Manufacturing i.e., Semiconductor Manufacturing and Jiangsu Jiejie go up and down completely randomly.
Pair Corralation between Semiconductor Manufacturing and Jiangsu Jiejie
Assuming the 90 days trading horizon Semiconductor Manufacturing Electronics is expected to under-perform the Jiangsu Jiejie. But the stock apears to be less risky and, when comparing its historical volatility, Semiconductor Manufacturing Electronics is 1.46 times less risky than Jiangsu Jiejie. The stock trades about -0.32 of its potential returns per unit of risk. The Jiangsu Jiejie Microelectronics is currently generating about -0.17 of returns per unit of risk over similar time horizon. If you would invest 3,845 in Jiangsu Jiejie Microelectronics on October 25, 2024 and sell it today you would lose (412.00) from holding Jiangsu Jiejie Microelectronics or give up 10.72% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Semiconductor Manufacturing El vs. Jiangsu Jiejie Microelectronic
Performance |
Timeline |
Semiconductor Manufacturing |
Jiangsu Jiejie Micro |
Semiconductor Manufacturing and Jiangsu Jiejie Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Semiconductor Manufacturing and Jiangsu Jiejie
The main advantage of trading using opposite Semiconductor Manufacturing and Jiangsu Jiejie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Semiconductor Manufacturing position performs unexpectedly, Jiangsu Jiejie 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 Jiangsu Jiejie will offset losses from the drop in Jiangsu Jiejie's long position.Semiconductor Manufacturing vs. Kweichow Moutai Co | Semiconductor Manufacturing vs. NAURA Technology Group | Semiconductor Manufacturing vs. APT Medical | Semiconductor Manufacturing vs. BYD Co Ltd |
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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