Correlation Between Yuanjie Semiconductor and Jinxiandai Information
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By analyzing existing cross correlation between Yuanjie Semiconductor Technology and Jinxiandai Information Industry, you can compare the effects of market volatilities on Yuanjie Semiconductor and Jinxiandai Information 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 Jinxiandai Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuanjie Semiconductor and Jinxiandai Information.
Diversification Opportunities for Yuanjie Semiconductor and Jinxiandai Information
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Yuanjie and Jinxiandai is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Yuanjie Semiconductor Technolo and Jinxiandai Information Industr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinxiandai Information 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 Jinxiandai Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinxiandai Information has no effect on the direction of Yuanjie Semiconductor i.e., Yuanjie Semiconductor and Jinxiandai Information go up and down completely randomly.
Pair Corralation between Yuanjie Semiconductor and Jinxiandai Information
Assuming the 90 days trading horizon Yuanjie Semiconductor Technology is expected to generate 1.03 times more return on investment than Jinxiandai Information. However, Yuanjie Semiconductor is 1.03 times more volatile than Jinxiandai Information Industry. It trades about 0.21 of its potential returns per unit of risk. Jinxiandai Information Industry is currently generating about -0.15 per unit of risk. If you would invest 13,172 in Yuanjie Semiconductor Technology on October 24, 2024 and sell it today you would earn a total of 2,251 from holding Yuanjie Semiconductor Technology or generate 17.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yuanjie Semiconductor Technolo vs. Jinxiandai Information Industr
Performance |
| Timeline |
| Yuanjie Semiconductor |
| Jinxiandai Information |
Yuanjie Semiconductor and Jinxiandai Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuanjie Semiconductor and Jinxiandai Information
The main advantage of trading using opposite Yuanjie Semiconductor and Jinxiandai Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuanjie Semiconductor position performs unexpectedly, Jinxiandai Information 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 Jinxiandai Information will offset losses from the drop in Jinxiandai Information's long position.The idea behind Yuanjie Semiconductor Technology and Jinxiandai Information Industry 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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