Correlation Between Semiconductor Manufacturing and Jiangsu Xinri
Specify exactly 2 symbols:
By analyzing existing cross correlation between Semiconductor Manufacturing Electronics and Jiangsu Xinri E Vehicle, you can compare the effects of market volatilities on Semiconductor Manufacturing and Jiangsu Xinri 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 Xinri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Semiconductor Manufacturing and Jiangsu Xinri.
Diversification Opportunities for Semiconductor Manufacturing and Jiangsu Xinri
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Semiconductor and Jiangsu is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Semiconductor Manufacturing El and Jiangsu Xinri E Vehicle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Xinri E 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 Xinri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Xinri E has no effect on the direction of Semiconductor Manufacturing i.e., Semiconductor Manufacturing and Jiangsu Xinri go up and down completely randomly.
Pair Corralation between Semiconductor Manufacturing and Jiangsu Xinri
Assuming the 90 days trading horizon Semiconductor Manufacturing Electronics is expected to under-perform the Jiangsu Xinri. But the stock apears to be less risky and, when comparing its historical volatility, Semiconductor Manufacturing Electronics is 1.21 times less risky than Jiangsu Xinri. The stock trades about -0.32 of its potential returns per unit of risk. The Jiangsu Xinri E Vehicle is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 1,105 in Jiangsu Xinri E Vehicle on October 30, 2024 and sell it today you would lose (88.00) from holding Jiangsu Xinri E Vehicle or give up 7.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Semiconductor Manufacturing El vs. Jiangsu Xinri E Vehicle
Performance |
| Timeline |
| Semiconductor Manufacturing |
| Jiangsu Xinri E |
Semiconductor Manufacturing and Jiangsu Xinri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Semiconductor Manufacturing and Jiangsu Xinri
The main advantage of trading using opposite Semiconductor Manufacturing and Jiangsu Xinri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Semiconductor Manufacturing position performs unexpectedly, Jiangsu Xinri 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 Xinri will offset losses from the drop in Jiangsu Xinri's long position.The idea behind Semiconductor Manufacturing Electronics and Jiangsu Xinri E Vehicle 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.
| Jiangsu Xinri vs. Xiangyang Automobile Bearing | Jiangsu Xinri vs. Ningbo Fangzheng Automobile | Jiangsu Xinri vs. Guangzhou Seagull Kitchen | Jiangsu Xinri vs. Guangzhou Automobile 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |