Correlation Between Yuanjie Semiconductor and HeBei Jinniu
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By analyzing existing cross correlation between Yuanjie Semiconductor Technology and HeBei Jinniu Chemical, you can compare the effects of market volatilities on Yuanjie Semiconductor and HeBei Jinniu 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 HeBei Jinniu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuanjie Semiconductor and HeBei Jinniu.
Diversification Opportunities for Yuanjie Semiconductor and HeBei Jinniu
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Yuanjie and HeBei is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Yuanjie Semiconductor Technolo and HeBei Jinniu Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HeBei Jinniu Chemical 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 HeBei Jinniu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HeBei Jinniu Chemical has no effect on the direction of Yuanjie Semiconductor i.e., Yuanjie Semiconductor and HeBei Jinniu go up and down completely randomly.
Pair Corralation between Yuanjie Semiconductor and HeBei Jinniu
Assuming the 90 days trading horizon Yuanjie Semiconductor Technology is expected to generate 1.02 times more return on investment than HeBei Jinniu. However, Yuanjie Semiconductor is 1.02 times more volatile than HeBei Jinniu Chemical. It trades about 0.05 of its potential returns per unit of risk. HeBei Jinniu Chemical is currently generating about 0.03 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 | 100.0% |
| Values | Daily Returns |
Yuanjie Semiconductor Technolo vs. HeBei Jinniu Chemical
Performance |
| Timeline |
| Yuanjie Semiconductor |
| HeBei Jinniu Chemical |
Yuanjie Semiconductor and HeBei Jinniu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuanjie Semiconductor and HeBei Jinniu
The main advantage of trading using opposite Yuanjie Semiconductor and HeBei Jinniu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuanjie Semiconductor position performs unexpectedly, HeBei Jinniu 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 HeBei Jinniu will offset losses from the drop in HeBei Jinniu's long position.The idea behind Yuanjie Semiconductor Technology and HeBei Jinniu Chemical 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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