Correlation Between Shenzhen Centralcon and StarPower Semiconductor
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By analyzing existing cross correlation between Shenzhen Centralcon Investment and StarPower Semiconductor, you can compare the effects of market volatilities on Shenzhen Centralcon and StarPower 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 Shenzhen Centralcon with a short position of StarPower Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Centralcon and StarPower Semiconductor.
Diversification Opportunities for Shenzhen Centralcon and StarPower Semiconductor
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and StarPower is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Centralcon Investment and StarPower Semiconductor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on StarPower Semiconductor and Shenzhen Centralcon 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 Shenzhen Centralcon Investment are associated (or correlated) with StarPower Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of StarPower Semiconductor has no effect on the direction of Shenzhen Centralcon i.e., Shenzhen Centralcon and StarPower Semiconductor go up and down completely randomly.
Pair Corralation between Shenzhen Centralcon and StarPower Semiconductor
Assuming the 90 days trading horizon Shenzhen Centralcon Investment is expected to generate 1.03 times more return on investment than StarPower Semiconductor. However, Shenzhen Centralcon is 1.03 times more volatile than StarPower Semiconductor. It trades about 0.02 of its potential returns per unit of risk. StarPower Semiconductor is currently generating about -0.04 per unit of risk. If you would invest 608.00 in Shenzhen Centralcon Investment on September 14, 2024 and sell it today you would lose (21.00) from holding Shenzhen Centralcon Investment or give up 3.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Centralcon Investment vs. StarPower Semiconductor
Performance |
| Timeline |
| Shenzhen Centralcon |
| StarPower Semiconductor |
Shenzhen Centralcon and StarPower Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Centralcon and StarPower Semiconductor
The main advantage of trading using opposite Shenzhen Centralcon and StarPower Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Centralcon position performs unexpectedly, StarPower 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 StarPower Semiconductor will offset losses from the drop in StarPower Semiconductor's long position.| Shenzhen Centralcon vs. China Life Insurance | Shenzhen Centralcon vs. Cinda Securities Co | Shenzhen Centralcon vs. Piotech Inc A | Shenzhen Centralcon vs. Dongxing Sec Co |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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