Correlation Between Hengli Industrial and Southchip Semiconductor
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By analyzing existing cross correlation between Hengli Industrial Development and Southchip Semiconductor Technology, you can compare the effects of market volatilities on Hengli Industrial 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 Hengli Industrial with a short position of Southchip Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengli Industrial and Southchip Semiconductor.
Diversification Opportunities for Hengli Industrial and Southchip Semiconductor
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hengli and Southchip is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Hengli Industrial Development and Southchip Semiconductor Techno in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southchip Semiconductor and Hengli Industrial 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 Hengli Industrial Development 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 Hengli Industrial i.e., Hengli Industrial and Southchip Semiconductor go up and down completely randomly.
Pair Corralation between Hengli Industrial and Southchip Semiconductor
Assuming the 90 days trading horizon Hengli Industrial Development is expected to generate 0.9 times more return on investment than Southchip Semiconductor. However, Hengli Industrial Development is 1.11 times less risky than Southchip Semiconductor. It trades about 0.11 of its potential returns per unit of risk. Southchip Semiconductor Technology is currently generating about -0.09 per unit of risk. If you would invest 213.00 in Hengli Industrial Development on October 20, 2024 and sell it today you would earn a total of 13.00 from holding Hengli Industrial Development or generate 6.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hengli Industrial Development vs. Southchip Semiconductor Techno
Performance |
| Timeline |
| Hengli Industrial |
| Southchip Semiconductor |
Hengli Industrial and Southchip Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengli Industrial and Southchip Semiconductor
The main advantage of trading using opposite Hengli Industrial and Southchip Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengli Industrial 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.| Hengli Industrial vs. Guangdong Jingyi Metal | Hengli Industrial vs. AVIC Fund Management | Hengli Industrial vs. Tongling Nonferrous Metals | Hengli Industrial vs. Heilongjiang Transport Development |
| Southchip Semiconductor vs. Suzhou Douson Drilling | Southchip Semiconductor vs. Lecron Energy Saving | Southchip Semiconductor vs. Industrial Bank Co | Southchip Semiconductor vs. Jiangsu Hoperun 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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