Correlation Between Shenwu Energy and StarPower Semiconductor
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By analyzing existing cross correlation between Shenwu Energy Saving and StarPower Semiconductor, you can compare the effects of market volatilities on Shenwu Energy and StarPower 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 Shenwu Energy with a short position of StarPower Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenwu Energy and StarPower Semiconductor.
Diversification Opportunities for Shenwu Energy and StarPower Semiconductor
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shenwu and StarPower is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Shenwu Energy Saving and StarPower Semiconductor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on StarPower Semiconductor and Shenwu Energy 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 Shenwu Energy Saving are associated (or correlated) with StarPower Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of StarPower Semiconductor has no effect on the direction of Shenwu Energy i.e., Shenwu Energy and StarPower Semiconductor go up and down completely randomly.
Pair Corralation between Shenwu Energy and StarPower Semiconductor
Assuming the 90 days trading horizon Shenwu Energy Saving is expected to under-perform the StarPower Semiconductor. In addition to that, Shenwu Energy is 2.17 times more volatile than StarPower Semiconductor. It trades about -0.05 of its total potential returns per unit of risk. StarPower Semiconductor is currently generating about -0.04 per unit of volatility. If you would invest 9,323 in StarPower Semiconductor on November 30, 2024 and sell it today you would lose (440.00) from holding StarPower Semiconductor or give up 4.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenwu Energy Saving vs. StarPower Semiconductor
Performance |
| Timeline |
| Shenwu Energy Saving |
| StarPower Semiconductor |
Shenwu Energy and StarPower Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenwu Energy and StarPower Semiconductor
The main advantage of trading using opposite Shenwu Energy and StarPower Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenwu Energy position performs unexpectedly, StarPower 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 StarPower Semiconductor will offset losses from the drop in StarPower Semiconductor's long position.| Shenwu Energy vs. iSoftStone Information Technology | Shenwu Energy vs. Keeson Technology Corp | Shenwu Energy vs. Tianjin Ruixin Technology | Shenwu Energy vs. Guangzhou KingTeller Technology |
| StarPower Semiconductor vs. Jilin OLED Material | StarPower Semiconductor vs. Nanxing Furniture Machinery | StarPower Semiconductor vs. Ningbo Tip Rubber | StarPower Semiconductor vs. Nanjing OLO Home |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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