Correlation Between Zoje Resources and Yuanjie Semiconductor
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By analyzing existing cross correlation between Zoje Resources Investment and Yuanjie Semiconductor Technology, you can compare the effects of market volatilities on Zoje Resources and Yuanjie 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 Zoje Resources with a short position of Yuanjie Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoje Resources and Yuanjie Semiconductor.
Diversification Opportunities for Zoje Resources and Yuanjie Semiconductor
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zoje and Yuanjie is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Zoje Resources Investment and Yuanjie Semiconductor Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yuanjie Semiconductor and Zoje Resources 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 Zoje Resources Investment are associated (or correlated) with Yuanjie Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yuanjie Semiconductor has no effect on the direction of Zoje Resources i.e., Zoje Resources and Yuanjie Semiconductor go up and down completely randomly.
Pair Corralation between Zoje Resources and Yuanjie Semiconductor
Assuming the 90 days trading horizon Zoje Resources Investment is expected to generate 0.76 times more return on investment than Yuanjie Semiconductor. However, Zoje Resources Investment is 1.32 times less risky than Yuanjie Semiconductor. It trades about 0.33 of its potential returns per unit of risk. Yuanjie Semiconductor Technology is currently generating about 0.18 per unit of risk. If you would invest 153.00 in Zoje Resources Investment on September 13, 2024 and sell it today you would earn a total of 188.00 from holding Zoje Resources Investment or generate 122.88% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Zoje Resources Investment vs. Yuanjie Semiconductor Technolo
Performance |
Timeline |
Zoje Resources Investment |
Yuanjie Semiconductor |
Zoje Resources and Yuanjie Semiconductor Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zoje Resources and Yuanjie Semiconductor
The main advantage of trading using opposite Zoje Resources and Yuanjie Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoje Resources position performs unexpectedly, Yuanjie 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 Yuanjie Semiconductor will offset losses from the drop in Yuanjie Semiconductor's long position.Zoje Resources vs. Industrial and Commercial | Zoje Resources vs. Kweichow Moutai Co | Zoje Resources vs. Agricultural Bank of | Zoje Resources 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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