Correlation Between Beijing Shunxin and Ingenic Semiconductor
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By analyzing existing cross correlation between Beijing Shunxin Agriculture and Ingenic Semiconductor, you can compare the effects of market volatilities on Beijing Shunxin and Ingenic 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 Beijing Shunxin with a short position of Ingenic Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Shunxin and Ingenic Semiconductor.
Diversification Opportunities for Beijing Shunxin and Ingenic Semiconductor
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and Ingenic is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Shunxin Agriculture and Ingenic Semiconductor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ingenic Semiconductor and Beijing Shunxin 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 Beijing Shunxin Agriculture are associated (or correlated) with Ingenic Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ingenic Semiconductor has no effect on the direction of Beijing Shunxin i.e., Beijing Shunxin and Ingenic Semiconductor go up and down completely randomly.
Pair Corralation between Beijing Shunxin and Ingenic Semiconductor
Assuming the 90 days trading horizon Beijing Shunxin Agriculture is expected to under-perform the Ingenic Semiconductor. But the stock apears to be less risky and, when comparing its historical volatility, Beijing Shunxin Agriculture is 1.41 times less risky than Ingenic Semiconductor. The stock trades about -0.27 of its potential returns per unit of risk. The Ingenic Semiconductor is currently generating about -0.15 of returns per unit of risk over similar time horizon. If you would invest 7,329 in Ingenic Semiconductor on October 28, 2024 and sell it today you would lose (678.00) from holding Ingenic Semiconductor or give up 9.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Shunxin Agriculture vs. Ingenic Semiconductor
Performance |
| Timeline |
| Beijing Shunxin Agri |
| Ingenic Semiconductor |
Beijing Shunxin and Ingenic Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Shunxin and Ingenic Semiconductor
The main advantage of trading using opposite Beijing Shunxin and Ingenic Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Shunxin position performs unexpectedly, Ingenic 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 Ingenic Semiconductor will offset losses from the drop in Ingenic Semiconductor's long position.| Beijing Shunxin vs. Harbin Hatou Investment | Beijing Shunxin vs. Cultural Investment Holdings | Beijing Shunxin vs. Road Environment Technology | Beijing Shunxin vs. Xiamen Insight Investment |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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