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
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sinomach and GRINM is 0.9. 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 Co is expected to generate 1.04 times more return on investment than GRINM Semiconductor. However, Sinomach Automobile is 1.04 times more volatile than GRINM Semiconductor Materials. It trades about 0.01 of its potential returns per unit of risk. GRINM Semiconductor Materials is currently generating about 0.01 per unit of risk. If you would invest 769.00 in Sinomach Automobile Co on September 20, 2024 and sell it today you would lose (42.00) from holding Sinomach Automobile Co or give up 5.46% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
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. Kweichow Moutai Co | Sinomach Automobile vs. Contemporary Amperex Technology | Sinomach Automobile vs. G bits Network Technology | Sinomach Automobile vs. BYD Co Ltd |
GRINM Semiconductor vs. Sinomach Automobile Co | GRINM Semiconductor vs. Linewell Software Co | GRINM Semiconductor vs. Sinofibers Technology Co | GRINM Semiconductor vs. China Mobile Limited |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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