Correlation Between Yuanjie Semiconductor and Shanghai Jinfeng
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By analyzing existing cross correlation between Yuanjie Semiconductor Technology and Shanghai Jinfeng Wine, you can compare the effects of market volatilities on Yuanjie Semiconductor and Shanghai Jinfeng 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 Shanghai Jinfeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuanjie Semiconductor and Shanghai Jinfeng.
Diversification Opportunities for Yuanjie Semiconductor and Shanghai Jinfeng
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Yuanjie and Shanghai is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Yuanjie Semiconductor Technolo and Shanghai Jinfeng Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Jinfeng Wine 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 Shanghai Jinfeng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Jinfeng Wine has no effect on the direction of Yuanjie Semiconductor i.e., Yuanjie Semiconductor and Shanghai Jinfeng go up and down completely randomly.
Pair Corralation between Yuanjie Semiconductor and Shanghai Jinfeng
Assuming the 90 days trading horizon Yuanjie Semiconductor Technology is expected to generate 2.19 times more return on investment than Shanghai Jinfeng. However, Yuanjie Semiconductor is 2.19 times more volatile than Shanghai Jinfeng Wine. It trades about 0.04 of its potential returns per unit of risk. Shanghai Jinfeng Wine is currently generating about -0.01 per unit of risk. If you would invest 9,204 in Yuanjie Semiconductor Technology on October 23, 2024 and sell it today you would earn a total of 5,296 from holding Yuanjie Semiconductor Technology or generate 57.54% 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. Shanghai Jinfeng Wine
Performance |
| Timeline |
| Yuanjie Semiconductor |
| Shanghai Jinfeng Wine |
Yuanjie Semiconductor and Shanghai Jinfeng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuanjie Semiconductor and Shanghai Jinfeng
The main advantage of trading using opposite Yuanjie Semiconductor and Shanghai Jinfeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuanjie Semiconductor position performs unexpectedly, Shanghai Jinfeng 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 Shanghai Jinfeng will offset losses from the drop in Shanghai Jinfeng's long position.| Yuanjie Semiconductor vs. Shanghai Jinfeng Wine | Yuanjie Semiconductor vs. Weichai Heavy Machinery | Yuanjie Semiconductor vs. Nanxing Furniture Machinery | Yuanjie Semiconductor vs. China Life Insurance |
| Shanghai Jinfeng vs. Dalian Thermal Power | Shanghai Jinfeng vs. Shengda Mining Co | Shanghai Jinfeng vs. Chengtun Mining Group | Shanghai Jinfeng vs. Shenyang Chemical Industry |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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