Correlation Between Yuanjie Semiconductor and Metro Investment
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By analyzing existing cross correlation between Yuanjie Semiconductor Technology and Metro Investment Development, you can compare the effects of market volatilities on Yuanjie Semiconductor and Metro Investment 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 Yuanjie Semiconductor with a short position of Metro Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuanjie Semiconductor and Metro Investment.
Diversification Opportunities for Yuanjie Semiconductor and Metro Investment
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Yuanjie and Metro is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Yuanjie Semiconductor Technolo and Metro Investment Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metro Investment Dev and Yuanjie Semiconductor 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 Yuanjie Semiconductor Technology are associated (or correlated) with Metro Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metro Investment Dev has no effect on the direction of Yuanjie Semiconductor i.e., Yuanjie Semiconductor and Metro Investment go up and down completely randomly.
Pair Corralation between Yuanjie Semiconductor and Metro Investment
Assuming the 90 days trading horizon Yuanjie Semiconductor Technology is expected to generate 1.47 times more return on investment than Metro Investment. However, Yuanjie Semiconductor is 1.47 times more volatile than Metro Investment Development. It trades about -0.02 of its potential returns per unit of risk. Metro Investment Development is currently generating about -0.05 per unit of risk. If you would invest 16,557 in Yuanjie Semiconductor Technology on October 19, 2024 and sell it today you would lose (1,659) from holding Yuanjie Semiconductor Technology or give up 10.02% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Yuanjie Semiconductor Technolo vs. Metro Investment Development
Performance |
Timeline |
Yuanjie Semiconductor |
Metro Investment Dev |
Yuanjie Semiconductor and Metro Investment Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Yuanjie Semiconductor and Metro Investment
The main advantage of trading using opposite Yuanjie Semiconductor and Metro Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuanjie Semiconductor position performs unexpectedly, Metro Investment 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 Metro Investment will offset losses from the drop in Metro Investment's long position.Yuanjie Semiconductor vs. Hangzhou Gaoxin Rubber | ||
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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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