Correlation Between Jiangsu GDK and Shannon Semiconductor
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By analyzing existing cross correlation between Jiangsu GDK Biotechnology and Shannon Semiconductor Technology, you can compare the effects of market volatilities on Jiangsu GDK and Shannon 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 Shannon Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu GDK and Shannon Semiconductor.
Diversification Opportunities for Jiangsu GDK and Shannon Semiconductor
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jiangsu and Shannon is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu GDK Biotechnology and Shannon Semiconductor Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shannon 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 Shannon Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shannon Semiconductor has no effect on the direction of Jiangsu GDK i.e., Jiangsu GDK and Shannon Semiconductor go up and down completely randomly.
Pair Corralation between Jiangsu GDK and Shannon Semiconductor
Assuming the 90 days trading horizon Jiangsu GDK Biotechnology is expected to under-perform the Shannon Semiconductor. But the stock apears to be less risky and, when comparing its historical volatility, Jiangsu GDK Biotechnology is 1.19 times less risky than Shannon Semiconductor. The stock trades about -0.05 of its potential returns per unit of risk. The Shannon Semiconductor Technology is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,767 in Shannon Semiconductor Technology on October 13, 2024 and sell it today you would earn a total of 858.00 from holding Shannon Semiconductor Technology or generate 48.56% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Jiangsu GDK Biotechnology vs. Shannon Semiconductor Technolo
Performance |
Timeline |
Jiangsu GDK Biotechnology |
Shannon Semiconductor |
Jiangsu GDK and Shannon Semiconductor Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jiangsu GDK and Shannon Semiconductor
The main advantage of trading using opposite Jiangsu GDK and Shannon Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu GDK position performs unexpectedly, Shannon 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 Shannon Semiconductor will offset losses from the drop in Shannon 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 |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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