Correlation Between Yuanjie Semiconductor and Liaoning Chengda
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By analyzing existing cross correlation between Yuanjie Semiconductor Technology and Liaoning Chengda Biotechnology, you can compare the effects of market volatilities on Yuanjie Semiconductor and Liaoning Chengda 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 Liaoning Chengda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuanjie Semiconductor and Liaoning Chengda.
Diversification Opportunities for Yuanjie Semiconductor and Liaoning Chengda
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Yuanjie and Liaoning is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Yuanjie Semiconductor Technolo and Liaoning Chengda Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liaoning Chengda Bio 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 Liaoning Chengda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liaoning Chengda Bio has no effect on the direction of Yuanjie Semiconductor i.e., Yuanjie Semiconductor and Liaoning Chengda go up and down completely randomly.
Pair Corralation between Yuanjie Semiconductor and Liaoning Chengda
Assuming the 90 days trading horizon Yuanjie Semiconductor Technology is expected to generate 3.57 times more return on investment than Liaoning Chengda. However, Yuanjie Semiconductor is 3.57 times more volatile than Liaoning Chengda Biotechnology. It trades about 0.11 of its potential returns per unit of risk. Liaoning Chengda Biotechnology is currently generating about 0.14 per unit of risk. If you would invest 13,519 in Yuanjie Semiconductor Technology on November 3, 2024 and sell it today you would earn a total of 1,042 from holding Yuanjie Semiconductor Technology or generate 7.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yuanjie Semiconductor Technolo vs. Liaoning Chengda Biotechnology
Performance |
| Timeline |
| Yuanjie Semiconductor |
| Liaoning Chengda Bio |
Yuanjie Semiconductor and Liaoning Chengda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuanjie Semiconductor and Liaoning Chengda
The main advantage of trading using opposite Yuanjie Semiconductor and Liaoning Chengda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuanjie Semiconductor position performs unexpectedly, Liaoning Chengda 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 Liaoning Chengda will offset losses from the drop in Liaoning Chengda's long position.| Yuanjie Semiconductor vs. Anhui Deli Household | Yuanjie Semiconductor vs. Dhc Software Co | Yuanjie Semiconductor vs. Chenzhou Jingui Silver | Yuanjie Semiconductor vs. Montage Technology Co |
| Liaoning Chengda vs. Kweichow Moutai Co | Liaoning Chengda vs. G bits Network Technology | Liaoning Chengda vs. Anhui Gujing Distillery | Liaoning Chengda vs. Anhui Gujing Distillery |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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