Correlation Between Shenyang Chemical and Shannon Semiconductor
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By analyzing existing cross correlation between Shenyang Chemical Industry and Shannon Semiconductor Technology, you can compare the effects of market volatilities on Shenyang Chemical and Shannon 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 Shenyang Chemical with a short position of Shannon Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Chemical and Shannon Semiconductor.
Diversification Opportunities for Shenyang Chemical and Shannon Semiconductor
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shenyang and Shannon is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Chemical Industry and Shannon Semiconductor Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shannon Semiconductor and Shenyang Chemical 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 Shenyang Chemical Industry are associated (or correlated) with Shannon Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shannon Semiconductor has no effect on the direction of Shenyang Chemical i.e., Shenyang Chemical and Shannon Semiconductor go up and down completely randomly.
Pair Corralation between Shenyang Chemical and Shannon Semiconductor
Assuming the 90 days trading horizon Shenyang Chemical Industry is expected to under-perform the Shannon Semiconductor. But the stock apears to be less risky and, when comparing its historical volatility, Shenyang Chemical Industry is 1.01 times less risky than Shannon Semiconductor. The stock trades about -0.08 of its potential returns per unit of risk. The Shannon Semiconductor Technology is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 2,849 in Shannon Semiconductor Technology on November 1, 2024 and sell it today you would lose (67.00) from holding Shannon Semiconductor Technology or give up 2.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenyang Chemical Industry vs. Shannon Semiconductor Technolo
Performance |
| Timeline |
| Shenyang Chemical |
| Shannon Semiconductor |
Shenyang Chemical and Shannon Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Chemical and Shannon Semiconductor
The main advantage of trading using opposite Shenyang Chemical and Shannon Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Chemical position performs unexpectedly, Shannon 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 Shannon Semiconductor will offset losses from the drop in Shannon Semiconductor's long position.| Shenyang Chemical vs. Hua Xia Bank | Shenyang Chemical vs. Panda Financial Holding | Shenyang Chemical vs. Shenzhen Centralcon Investment | Shenyang Chemical vs. Lecron Energy Saving |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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