Correlation Between Xiamen Insight and Semiconductor Manufacturing
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By analyzing existing cross correlation between Xiamen Insight Investment and Semiconductor Manufacturing Intl, you can compare the effects of market volatilities on Xiamen Insight and Semiconductor Manufacturing 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 Xiamen Insight with a short position of Semiconductor Manufacturing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Insight and Semiconductor Manufacturing.
Diversification Opportunities for Xiamen Insight and Semiconductor Manufacturing
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Xiamen and Semiconductor is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Insight Investment and Semiconductor Manufacturing In in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Semiconductor Manufacturing and Xiamen Insight 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 Xiamen Insight Investment are associated (or correlated) with Semiconductor Manufacturing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Semiconductor Manufacturing has no effect on the direction of Xiamen Insight i.e., Xiamen Insight and Semiconductor Manufacturing go up and down completely randomly.
Pair Corralation between Xiamen Insight and Semiconductor Manufacturing
Assuming the 90 days trading horizon Xiamen Insight Investment is expected to under-perform the Semiconductor Manufacturing. But the stock apears to be less risky and, when comparing its historical volatility, Xiamen Insight Investment is 1.06 times less risky than Semiconductor Manufacturing. The stock trades about -0.1 of its potential returns per unit of risk. The Semiconductor Manufacturing Intl is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 9,604 in Semiconductor Manufacturing Intl on November 6, 2024 and sell it today you would lose (210.00) from holding Semiconductor Manufacturing Intl or give up 2.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Insight Investment vs. Semiconductor Manufacturing In
Performance |
| Timeline |
| Xiamen Insight Investment |
| Semiconductor Manufacturing |
Xiamen Insight and Semiconductor Manufacturing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Insight and Semiconductor Manufacturing
The main advantage of trading using opposite Xiamen Insight and Semiconductor Manufacturing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Insight position performs unexpectedly, Semiconductor Manufacturing 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 Semiconductor Manufacturing will offset losses from the drop in Semiconductor Manufacturing's long position.| Xiamen Insight vs. Sportsoul Co Ltd | Xiamen Insight vs. Suzhou Weizhixiang Food | Xiamen Insight vs. Yan Tai Shuang | Xiamen Insight vs. Jinzai Food Group |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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