Correlation Between Yuanjie Semiconductor and Guangdong Shenglu
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By analyzing existing cross correlation between Yuanjie Semiconductor Technology and Guangdong Shenglu Telecommunication, you can compare the effects of market volatilities on Yuanjie Semiconductor and Guangdong Shenglu 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 Yuanjie Semiconductor with a short position of Guangdong Shenglu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuanjie Semiconductor and Guangdong Shenglu.
Diversification Opportunities for Yuanjie Semiconductor and Guangdong Shenglu
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Yuanjie and Guangdong is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Yuanjie Semiconductor Technolo and Guangdong Shenglu Telecommunic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Shenglu and Yuanjie 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 Yuanjie Semiconductor Technology are associated (or correlated) with Guangdong Shenglu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Shenglu has no effect on the direction of Yuanjie Semiconductor i.e., Yuanjie Semiconductor and Guangdong Shenglu go up and down completely randomly.
Pair Corralation between Yuanjie Semiconductor and Guangdong Shenglu
Assuming the 90 days trading horizon Yuanjie Semiconductor Technology is expected to generate 1.43 times more return on investment than Guangdong Shenglu. However, Yuanjie Semiconductor is 1.43 times more volatile than Guangdong Shenglu Telecommunication. It trades about -0.05 of its potential returns per unit of risk. Guangdong Shenglu Telecommunication is currently generating about -0.36 per unit of risk. If you would invest 13,718 in Yuanjie Semiconductor Technology on October 14, 2024 and sell it today you would lose (665.00) from holding Yuanjie Semiconductor Technology or give up 4.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yuanjie Semiconductor Technolo vs. Guangdong Shenglu Telecommunic
Performance |
| Timeline |
| Yuanjie Semiconductor |
| Guangdong Shenglu |
Yuanjie Semiconductor and Guangdong Shenglu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuanjie Semiconductor and Guangdong Shenglu
The main advantage of trading using opposite Yuanjie Semiconductor and Guangdong Shenglu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuanjie Semiconductor position performs unexpectedly, Guangdong Shenglu 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 Guangdong Shenglu will offset losses from the drop in Guangdong Shenglu's long position.| Yuanjie Semiconductor vs. Jiugui Liquor Co | Yuanjie Semiconductor vs. Panda Dairy Corp | Yuanjie Semiconductor vs. Vats Liquor Chain | Yuanjie Semiconductor vs. Zhongyin Babi Food |
| Guangdong Shenglu vs. Harbin Hatou Investment | Guangdong Shenglu vs. Cultural Investment Holdings | Guangdong Shenglu vs. Yuanjie Semiconductor Technology | Guangdong Shenglu vs. Vanfund Urban 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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