Correlation Between Jinsanjiang (Zhaoqing) and Will Semiconductor

Can any of the company-specific risk be diversified away by investing in both Jinsanjiang (Zhaoqing) and Will 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 Jinsanjiang (Zhaoqing) and Will Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Jinsanjiang Silicon Material and Will Semiconductor Co, you can compare the effects of market volatilities on Jinsanjiang (Zhaoqing) and Will 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 Jinsanjiang (Zhaoqing) with a short position of Will Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinsanjiang (Zhaoqing) and Will Semiconductor.

Diversification Opportunities for Jinsanjiang (Zhaoqing) and Will Semiconductor

-0.22

Correlation Coefficient

Jinsanjiang (Zhaoqing)  Will Semiconductor

Very good diversification

The 3 months correlation between Jinsanjiang and Will is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Jinsanjiang Silicon Material and Will Semiconductor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Will Semiconductor and Jinsanjiang (Zhaoqing) 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 Jinsanjiang Silicon Material are associated (or correlated) with Will Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Will Semiconductor has no effect on the direction of Jinsanjiang (Zhaoqing) i.e., Jinsanjiang (Zhaoqing) and Will Semiconductor go up and down completely randomly.

Pair Corralation between Jinsanjiang (Zhaoqing) and Will Semiconductor

Assuming the 90 days trading horizon Jinsanjiang (Zhaoqing) is expected to generate 40.66 times less return on investment than Will Semiconductor. In addition to that, Jinsanjiang (Zhaoqing) is 1.1 times more volatile than Will Semiconductor Co. It trades about 0.0 of its total potential returns per unit of risk. Will Semiconductor Co is currently generating about 0.15 per unit of volatility. If you would invest  10,601  in Will Semiconductor Co on December 26, 2024 and sell it today you would earn a total of  2,759  from holding Will Semiconductor Co or generate 26.03% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Jinsanjiang Silicon Material  vs.  Will Semiconductor Co

Jinsanjiang (Zhaoqing)

Risk-Adjusted Performance

Very Weak

Over the last 90 days Jinsanjiang Silicon Material has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Jinsanjiang (Zhaoqing) is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Will Semiconductor

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Will Semiconductor Co are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Will Semiconductor sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Jinsanjiang (Zhaoqing) and Will Semiconductor

The main advantage of trading using opposite Jinsanjiang (Zhaoqing) and Will Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinsanjiang (Zhaoqing) position performs unexpectedly, Will 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 Will Semiconductor will offset losses from the drop in Will Semiconductor's long position.

The idea behind Jinsanjiang Silicon Material and Will Semiconductor Co 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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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.