Correlation Between Jinsanjiang Silicon and Suzhou Oriental

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Jinsanjiang Silicon and Suzhou Oriental 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 Silicon and Suzhou Oriental 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 Suzhou Oriental Semiconductor, you can compare the effects of market volatilities on Jinsanjiang Silicon and Suzhou Oriental 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 Silicon with a short position of Suzhou Oriental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinsanjiang Silicon and Suzhou Oriental.

Diversification Opportunities for Jinsanjiang Silicon and Suzhou Oriental

JinsanjiangSuzhouDiversified AwayJinsanjiangSuzhouDiversified Away100%
0.54
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Jinsanjiang and Suzhou is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Jinsanjiang Silicon Material and Suzhou Oriental Semiconductor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Oriental Semi and Jinsanjiang Silicon 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 Suzhou Oriental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Oriental Semi has no effect on the direction of Jinsanjiang Silicon i.e., Jinsanjiang Silicon and Suzhou Oriental go up and down completely randomly.

Pair Corralation between Jinsanjiang Silicon and Suzhou Oriental

Assuming the 90 days trading horizon Jinsanjiang Silicon Material is expected to generate 1.2 times more return on investment than Suzhou Oriental. However, Jinsanjiang Silicon is 1.2 times more volatile than Suzhou Oriental Semiconductor. It trades about -0.01 of its potential returns per unit of risk. Suzhou Oriental Semiconductor is currently generating about -0.11 per unit of risk. If you would invest  1,160  in Jinsanjiang Silicon Material on October 31, 2024 and sell it today you would lose (78.00) from holding Jinsanjiang Silicon Material or give up 6.72% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Jinsanjiang Silicon Material  vs.  Suzhou Oriental Semiconductor

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -20-10010
JavaScript chart by amCharts 3.21.15301059 688261
       Timeline  
Jinsanjiang Silicon 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
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 Silicon is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15DecJanJan9.51010.51111.51212.51313.5
Suzhou Oriental Semi 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Suzhou Oriental Semiconductor has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long term up-swing for the company investors.
JavaScript chart by amCharts 3.21.15DecJanJan4045505560

Jinsanjiang Silicon and Suzhou Oriental Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-6.43-4.81-3.2-1.59-0.02641.563.144.736.32 0.0250.0300.0350.040
JavaScript chart by amCharts 3.21.15301059 688261
       Returns  

Pair Trading with Jinsanjiang Silicon and Suzhou Oriental

The main advantage of trading using opposite Jinsanjiang Silicon and Suzhou Oriental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinsanjiang Silicon position performs unexpectedly, Suzhou Oriental 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 Suzhou Oriental will offset losses from the drop in Suzhou Oriental's long position.
The idea behind Jinsanjiang Silicon Material and Suzhou Oriental Semiconductor 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.
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.

Other Complementary Tools

Odds Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Piotroski F Score
Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals


 

Trending Assets