Correlation Between Hengli Industrial and Lontium Semiconductor
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By analyzing existing cross correlation between Hengli Industrial Development and Lontium Semiconductor Corp, you can compare the effects of market volatilities on Hengli Industrial and Lontium 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 Lontium Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengli Industrial and Lontium Semiconductor.
Diversification Opportunities for Hengli Industrial and Lontium Semiconductor
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hengli and Lontium is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Hengli Industrial Development and Lontium Semiconductor Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lontium 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 Lontium Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lontium Semiconductor has no effect on the direction of Hengli Industrial i.e., Hengli Industrial and Lontium Semiconductor go up and down completely randomly.
Pair Corralation between Hengli Industrial and Lontium Semiconductor
Assuming the 90 days trading horizon Hengli Industrial Development is expected to under-perform the Lontium Semiconductor. But the stock apears to be less risky and, when comparing its historical volatility, Hengli Industrial Development is 2.06 times less risky than Lontium Semiconductor. The stock trades about -0.06 of its potential returns per unit of risk. The Lontium Semiconductor Corp is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 7,230 in Lontium Semiconductor Corp on October 12, 2024 and sell it today you would earn a total of 888.00 from holding Lontium Semiconductor Corp or generate 12.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hengli Industrial Development vs. Lontium Semiconductor Corp
Performance |
| Timeline |
| Hengli Industrial |
| Lontium Semiconductor |
Hengli Industrial and Lontium Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengli Industrial and Lontium Semiconductor
The main advantage of trading using opposite Hengli Industrial and Lontium Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengli Industrial position performs unexpectedly, Lontium 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 Lontium Semiconductor will offset losses from the drop in Lontium Semiconductor's long position.| Hengli Industrial vs. PKU HealthCare Corp | Hengli Industrial vs. De Rucci Healthy | Hengli Industrial vs. Sunny Loan Top | Hengli Industrial vs. Lotus Health Group |
| Lontium Semiconductor vs. Rising Nonferrous Metals | Lontium Semiconductor vs. Hengli Industrial Development | Lontium Semiconductor vs. Ningbo Fujia Industrial | Lontium Semiconductor vs. Ye Chiu Metal |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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