Correlation Between JIAHUA STORES and Nordic Semiconductor
Can any of the company-specific risk be diversified away by investing in both JIAHUA STORES and Nordic Semiconductor at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining JIAHUA STORES and Nordic Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JIAHUA STORES and Nordic Semiconductor ASA, you can compare the effects of market volatilities on JIAHUA STORES and Nordic 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 JIAHUA STORES with a short position of Nordic Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of JIAHUA STORES and Nordic Semiconductor.
Diversification Opportunities for JIAHUA STORES and Nordic Semiconductor
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JIAHUA and Nordic is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JIAHUA STORES and Nordic Semiconductor ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordic Semiconductor ASA and JIAHUA STORES 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 JIAHUA STORES are associated (or correlated) with Nordic Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordic Semiconductor ASA has no effect on the direction of JIAHUA STORES i.e., JIAHUA STORES and Nordic Semiconductor go up and down completely randomly.
Pair Corralation between JIAHUA STORES and Nordic Semiconductor
If you would invest 873.00 in Nordic Semiconductor ASA on October 20, 2024 and sell it today you would earn a total of 83.00 from holding Nordic Semiconductor ASA or generate 9.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
JIAHUA STORES vs. Nordic Semiconductor ASA
Performance |
| Timeline |
| JIAHUA STORES |
| Nordic Semiconductor ASA |
JIAHUA STORES and Nordic Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JIAHUA STORES and Nordic Semiconductor
The main advantage of trading using opposite JIAHUA STORES and Nordic Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JIAHUA STORES position performs unexpectedly, Nordic 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 Nordic Semiconductor will offset losses from the drop in Nordic Semiconductor's long position.| JIAHUA STORES vs. Altair Engineering | JIAHUA STORES vs. Delta Air Lines | JIAHUA STORES vs. Alaska Air Group | JIAHUA STORES vs. PRECISION DRILLING P |
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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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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