Correlation Between Southchip Semiconductor and Jinsanjiang Silicon
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By analyzing existing cross correlation between Southchip Semiconductor Technology and Jinsanjiang Silicon Material, you can compare the effects of market volatilities on Southchip Semiconductor and Jinsanjiang Silicon 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 Southchip Semiconductor with a short position of Jinsanjiang Silicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Southchip Semiconductor and Jinsanjiang Silicon.
Diversification Opportunities for Southchip Semiconductor and Jinsanjiang Silicon
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Southchip and Jinsanjiang is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Southchip Semiconductor Techno and Jinsanjiang Silicon Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinsanjiang Silicon and Southchip 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 Southchip Semiconductor Technology are associated (or correlated) with Jinsanjiang Silicon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinsanjiang Silicon has no effect on the direction of Southchip Semiconductor i.e., Southchip Semiconductor and Jinsanjiang Silicon go up and down completely randomly.
Pair Corralation between Southchip Semiconductor and Jinsanjiang Silicon
Assuming the 90 days trading horizon Southchip Semiconductor Technology is expected to under-perform the Jinsanjiang Silicon. But the stock apears to be less risky and, when comparing its historical volatility, Southchip Semiconductor Technology is 1.05 times less risky than Jinsanjiang Silicon. The stock trades about -0.02 of its potential returns per unit of risk. The Jinsanjiang Silicon Material is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 1,552 in Jinsanjiang Silicon Material on October 16, 2024 and sell it today you would lose (546.00) from holding Jinsanjiang Silicon Material or give up 35.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 93.68% |
| Values | Daily Returns |
Southchip Semiconductor Techno vs. Jinsanjiang Silicon Material
Performance |
| Timeline |
| Southchip Semiconductor |
| Jinsanjiang Silicon |
Southchip Semiconductor and Jinsanjiang Silicon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Southchip Semiconductor and Jinsanjiang Silicon
The main advantage of trading using opposite Southchip Semiconductor and Jinsanjiang Silicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Southchip Semiconductor position performs unexpectedly, Jinsanjiang Silicon 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 Jinsanjiang Silicon will offset losses from the drop in Jinsanjiang Silicon's long position.The idea behind Southchip Semiconductor Technology and Jinsanjiang Silicon Material 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.
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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