Correlation Between Chengdu Xingrong and Southchip Semiconductor
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By analyzing existing cross correlation between Chengdu Xingrong Investment and Southchip Semiconductor Technology, you can compare the effects of market volatilities on Chengdu Xingrong and Southchip 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 Chengdu Xingrong with a short position of Southchip Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Xingrong and Southchip Semiconductor.
Diversification Opportunities for Chengdu Xingrong and Southchip Semiconductor
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Chengdu and Southchip is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Xingrong Investment and Southchip Semiconductor Techno in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southchip Semiconductor and Chengdu Xingrong 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 Chengdu Xingrong Investment are associated (or correlated) with Southchip Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southchip Semiconductor has no effect on the direction of Chengdu Xingrong i.e., Chengdu Xingrong and Southchip Semiconductor go up and down completely randomly.
Pair Corralation between Chengdu Xingrong and Southchip Semiconductor
Assuming the 90 days trading horizon Chengdu Xingrong Investment is expected to generate 0.56 times more return on investment than Southchip Semiconductor. However, Chengdu Xingrong Investment is 1.8 times less risky than Southchip Semiconductor. It trades about 0.05 of its potential returns per unit of risk. Southchip Semiconductor Technology is currently generating about 0.0 per unit of risk. If you would invest 515.00 in Chengdu Xingrong Investment on October 16, 2024 and sell it today you would earn a total of 168.00 from holding Chengdu Xingrong Investment or generate 32.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Xingrong Investment vs. Southchip Semiconductor Techno
Performance |
| Timeline |
| Chengdu Xingrong Inv |
| Southchip Semiconductor |
Chengdu Xingrong and Southchip Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Xingrong and Southchip Semiconductor
The main advantage of trading using opposite Chengdu Xingrong and Southchip Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Xingrong position performs unexpectedly, Southchip 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 Southchip Semiconductor will offset losses from the drop in Southchip Semiconductor's long position.| Chengdu Xingrong vs. Shanghai Newtouch Software | Chengdu Xingrong vs. Thunder Software Technology | Chengdu Xingrong vs. Invengo Information Technology | Chengdu Xingrong vs. China National Software |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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