Correlation Between Shanghai Yanpu and GRINM Semiconductor
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By analyzing existing cross correlation between Shanghai Yanpu Metal and GRINM Semiconductor Materials, you can compare the effects of market volatilities on Shanghai Yanpu 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 Shanghai Yanpu with a short position of GRINM Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Yanpu and GRINM Semiconductor.
Diversification Opportunities for Shanghai Yanpu and GRINM Semiconductor
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shanghai and GRINM is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Yanpu Metal and GRINM Semiconductor Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRINM Semiconductor and Shanghai Yanpu 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 Shanghai Yanpu Metal 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 Shanghai Yanpu i.e., Shanghai Yanpu and GRINM Semiconductor go up and down completely randomly.
Pair Corralation between Shanghai Yanpu and GRINM Semiconductor
Assuming the 90 days trading horizon Shanghai Yanpu Metal is expected to generate 0.71 times more return on investment than GRINM Semiconductor. However, Shanghai Yanpu Metal is 1.4 times less risky than GRINM Semiconductor. It trades about 0.16 of its potential returns per unit of risk. GRINM Semiconductor Materials is currently generating about 0.11 per unit of risk. If you would invest 2,781 in Shanghai Yanpu Metal on September 26, 2024 and sell it today you would earn a total of 937.00 from holding Shanghai Yanpu Metal or generate 33.69% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Shanghai Yanpu Metal vs. GRINM Semiconductor Materials
Performance |
Timeline |
Shanghai Yanpu Metal |
GRINM Semiconductor |
Shanghai Yanpu and GRINM Semiconductor Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shanghai Yanpu and GRINM Semiconductor
The main advantage of trading using opposite Shanghai Yanpu and GRINM Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Yanpu 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.Shanghai Yanpu vs. China Life Insurance | Shanghai Yanpu vs. Cinda Securities Co | Shanghai Yanpu vs. Piotech Inc A | Shanghai Yanpu vs. Dongxing Sec Co |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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