Correlation Between Sinomach Automobile and GRINM Semiconductor
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By analyzing existing cross correlation between Sinomach Automobile Co and GRINM Semiconductor Materials, you can compare the effects of market volatilities on Sinomach Automobile and GRINM 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 Sinomach Automobile with a short position of GRINM Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach Automobile and GRINM Semiconductor.
Diversification Opportunities for Sinomach Automobile and GRINM Semiconductor
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sinomach and GRINM is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach Automobile Co and GRINM Semiconductor Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRINM Semiconductor and Sinomach Automobile 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 Sinomach Automobile Co are associated (or correlated) with GRINM Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRINM Semiconductor has no effect on the direction of Sinomach Automobile i.e., Sinomach Automobile and GRINM Semiconductor go up and down completely randomly.
Pair Corralation between Sinomach Automobile and GRINM Semiconductor
Assuming the 90 days trading horizon Sinomach Automobile is expected to generate 1.56 times less return on investment than GRINM Semiconductor. But when comparing it to its historical volatility, Sinomach Automobile Co is 1.91 times less risky than GRINM Semiconductor. It trades about 0.25 of its potential returns per unit of risk. GRINM Semiconductor Materials is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 1,011 in GRINM Semiconductor Materials on December 11, 2024 and sell it today you would earn a total of 240.00 from holding GRINM Semiconductor Materials or generate 23.74% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Sinomach Automobile Co vs. GRINM Semiconductor Materials
Performance |
Timeline |
Sinomach Automobile |
GRINM Semiconductor |
Sinomach Automobile and GRINM Semiconductor Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sinomach Automobile and GRINM Semiconductor
The main advantage of trading using opposite Sinomach Automobile and GRINM Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach Automobile position performs unexpectedly, GRINM 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 GRINM Semiconductor will offset losses from the drop in GRINM Semiconductor's long position.Sinomach Automobile vs. Western Superconducting Tech | Sinomach Automobile vs. HanS Laser Tech | Sinomach Automobile vs. Bohai Leasing Co | Sinomach Automobile vs. Shenzhen Urban Transport |
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 Stocks Directory module to find actively traded stocks across global markets.
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