Correlation Between Semiconductor Manufacturing and Zhejiang Cayi
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By analyzing existing cross correlation between Semiconductor Manufacturing Electronics and Zhejiang Cayi Vacuum, you can compare the effects of market volatilities on Semiconductor Manufacturing and Zhejiang Cayi 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 Semiconductor Manufacturing with a short position of Zhejiang Cayi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Semiconductor Manufacturing and Zhejiang Cayi.
Diversification Opportunities for Semiconductor Manufacturing and Zhejiang Cayi
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Semiconductor and Zhejiang is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Semiconductor Manufacturing El and Zhejiang Cayi Vacuum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Cayi Vacuum and Semiconductor Manufacturing 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 Semiconductor Manufacturing Electronics are associated (or correlated) with Zhejiang Cayi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Cayi Vacuum has no effect on the direction of Semiconductor Manufacturing i.e., Semiconductor Manufacturing and Zhejiang Cayi go up and down completely randomly.
Pair Corralation between Semiconductor Manufacturing and Zhejiang Cayi
Assuming the 90 days trading horizon Semiconductor Manufacturing Electronics is expected to generate 2.19 times more return on investment than Zhejiang Cayi. However, Semiconductor Manufacturing is 2.19 times more volatile than Zhejiang Cayi Vacuum. It trades about 0.1 of its potential returns per unit of risk. Zhejiang Cayi Vacuum is currently generating about -0.14 per unit of risk. If you would invest 556.00 in Semiconductor Manufacturing Electronics on September 9, 2025 and sell it today you would earn a total of 97.00 from holding Semiconductor Manufacturing Electronics or generate 17.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Semiconductor Manufacturing El vs. Zhejiang Cayi Vacuum
Performance |
| Timeline |
| Semiconductor Manufacturing |
| Zhejiang Cayi Vacuum |
Semiconductor Manufacturing and Zhejiang Cayi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Semiconductor Manufacturing and Zhejiang Cayi
The main advantage of trading using opposite Semiconductor Manufacturing and Zhejiang Cayi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Semiconductor Manufacturing position performs unexpectedly, Zhejiang Cayi 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 Zhejiang Cayi will offset losses from the drop in Zhejiang Cayi's long position.The idea behind Semiconductor Manufacturing Electronics and Zhejiang Cayi Vacuum 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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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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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