Correlation Between Jiangsu GDK and Ingenic Semiconductor
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By analyzing existing cross correlation between Jiangsu GDK Biotechnology and Ingenic Semiconductor, you can compare the effects of market volatilities on Jiangsu GDK and Ingenic Semiconductor 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 Jiangsu GDK with a short position of Ingenic Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu GDK and Ingenic Semiconductor.
Diversification Opportunities for Jiangsu GDK and Ingenic Semiconductor
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jiangsu and Ingenic is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu GDK Biotechnology and Ingenic Semiconductor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ingenic Semiconductor and Jiangsu GDK 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 Jiangsu GDK Biotechnology are associated (or correlated) with Ingenic Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ingenic Semiconductor has no effect on the direction of Jiangsu GDK i.e., Jiangsu GDK and Ingenic Semiconductor go up and down completely randomly.
Pair Corralation between Jiangsu GDK and Ingenic Semiconductor
Assuming the 90 days trading horizon Jiangsu GDK Biotechnology is expected to under-perform the Ingenic Semiconductor. In addition to that, Jiangsu GDK is 1.07 times more volatile than Ingenic Semiconductor. It trades about -0.05 of its total potential returns per unit of risk. Ingenic Semiconductor is currently generating about 0.0 per unit of volatility. If you would invest 7,937 in Ingenic Semiconductor on October 13, 2024 and sell it today you would lose (1,847) from holding Ingenic Semiconductor or give up 23.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu GDK Biotechnology vs. Ingenic Semiconductor
Performance |
| Timeline |
| Jiangsu GDK Biotechnology |
| Ingenic Semiconductor |
Jiangsu GDK and Ingenic Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu GDK and Ingenic Semiconductor
The main advantage of trading using opposite Jiangsu GDK and Ingenic Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu GDK position performs unexpectedly, Ingenic Semiconductor 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 Ingenic Semiconductor will offset losses from the drop in Ingenic Semiconductor's long position.| Jiangsu GDK vs. Ye Chiu Metal | Jiangsu GDK vs. Ningxia Younglight Chemicals | Jiangsu GDK vs. Shandong Sanyuan Biotechnology | Jiangsu GDK vs. Shandong Polymer Biochemicals |
| Ingenic Semiconductor vs. Longjian Road Bridge | Ingenic Semiconductor vs. Jiangsu GDK Biotechnology | Ingenic Semiconductor vs. Wuhan Hvsen Biotechnology | Ingenic Semiconductor vs. Jinhe Biotechnology Co |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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