Correlation Between Yuanjie Semiconductor and Xiamen CD
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By analyzing existing cross correlation between Yuanjie Semiconductor Technology and Xiamen CD, you can compare the effects of market volatilities on Yuanjie Semiconductor and Xiamen CD 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 Xiamen CD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuanjie Semiconductor and Xiamen CD.
Diversification Opportunities for Yuanjie Semiconductor and Xiamen CD
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Yuanjie and Xiamen is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Yuanjie Semiconductor Technolo and Xiamen CD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen CD 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 Xiamen CD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen CD has no effect on the direction of Yuanjie Semiconductor i.e., Yuanjie Semiconductor and Xiamen CD go up and down completely randomly.
Pair Corralation between Yuanjie Semiconductor and Xiamen CD
Assuming the 90 days trading horizon Yuanjie Semiconductor Technology is expected to generate 2.37 times more return on investment than Xiamen CD. However, Yuanjie Semiconductor is 2.37 times more volatile than Xiamen CD. It trades about 0.04 of its potential returns per unit of risk. Xiamen CD is currently generating about -0.14 per unit of risk. If you would invest 13,399 in Yuanjie Semiconductor Technology on October 16, 2024 and sell it today you would earn a total of 281.00 from holding Yuanjie Semiconductor Technology or generate 2.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Yuanjie Semiconductor Technolo vs. Xiamen CD
Performance |
| Timeline |
| Yuanjie Semiconductor |
| Xiamen CD |
Yuanjie Semiconductor and Xiamen CD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuanjie Semiconductor and Xiamen CD
The main advantage of trading using opposite Yuanjie Semiconductor and Xiamen CD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuanjie Semiconductor position performs unexpectedly, Xiamen CD 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 Xiamen CD will offset losses from the drop in Xiamen CD's long position.The idea behind Yuanjie Semiconductor Technology and Xiamen CD 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.
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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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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