Correlation Between CITIC Guoan and StarPower Semiconductor
Specify exactly 2 symbols:
By analyzing existing cross correlation between CITIC Guoan Information and StarPower Semiconductor, you can compare the effects of market volatilities on CITIC Guoan 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 CITIC Guoan with a short position of StarPower Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Guoan and StarPower Semiconductor.
Diversification Opportunities for CITIC Guoan and StarPower Semiconductor
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CITIC and StarPower is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Guoan Information and StarPower Semiconductor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on StarPower Semiconductor and CITIC Guoan 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 CITIC Guoan Information 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 CITIC Guoan i.e., CITIC Guoan and StarPower Semiconductor go up and down completely randomly.
Pair Corralation between CITIC Guoan and StarPower Semiconductor
Assuming the 90 days trading horizon CITIC Guoan Information is expected to under-perform the StarPower Semiconductor. In addition to that, CITIC Guoan is 1.27 times more volatile than StarPower Semiconductor. It trades about -0.26 of its total potential returns per unit of risk. StarPower Semiconductor is currently generating about -0.26 per unit of volatility. If you would invest 9,572 in StarPower Semiconductor on October 25, 2024 and sell it today you would lose (1,030) from holding StarPower Semiconductor or give up 10.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CITIC Guoan Information vs. StarPower Semiconductor
Performance |
| Timeline |
| CITIC Guoan Information |
| StarPower Semiconductor |
CITIC Guoan and StarPower Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Guoan and StarPower Semiconductor
The main advantage of trading using opposite CITIC Guoan and StarPower Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Guoan 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.| CITIC Guoan vs. Industrial and Commercial | CITIC Guoan vs. Agricultural Bank of | CITIC Guoan vs. China Construction Bank | CITIC Guoan vs. Bank of China |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |