Correlation Between China BlueChemical and INTEGR SILICON

Can any of the company-specific risk be diversified away by investing in both China BlueChemical and INTEGR SILICON 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 China BlueChemical and INTEGR SILICON into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between China BlueChemical and INTEGR SILICON SOL, you can compare the effects of market volatilities on China BlueChemical and INTEGR SILICON 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 China BlueChemical with a short position of INTEGR SILICON. Check out your portfolio center. Please also check ongoing floating volatility patterns of China BlueChemical and INTEGR SILICON.

Diversification Opportunities for China BlueChemical and INTEGR SILICON

0.0

Correlation Coefficient

China BlueChemical  INTEGR SILICON

Pay attention - limited upside

The 3 months correlation between China and INTEGR is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China BlueChemical and INTEGR SILICON SOL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTEGR SILICON SOL and China BlueChemical 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 China BlueChemical are associated (or correlated) with INTEGR SILICON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTEGR SILICON SOL has no effect on the direction of China BlueChemical i.e., China BlueChemical and INTEGR SILICON go up and down completely randomly.

Pair Corralation between China BlueChemical and INTEGR SILICON

If you would invest  23.00  in China BlueChemical on September 12, 2024 and sell it today you would earn a total of  1.00  from holding China BlueChemical or generate 4.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

China BlueChemical  vs.  INTEGR SILICON SOL

China BlueChemical

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in China BlueChemical are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, China BlueChemical reported solid returns over the last few months and may actually be approaching a breakup point.

INTEGR SILICON SOL

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days INTEGR SILICON SOL has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, INTEGR SILICON is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with China BlueChemical and INTEGR SILICON

The main advantage of trading using opposite China BlueChemical and INTEGR SILICON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China BlueChemical position performs unexpectedly, INTEGR SILICON 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 INTEGR SILICON will offset losses from the drop in INTEGR SILICON's long position.

The idea behind China BlueChemical and INTEGR SILICON SOL 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.

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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..