Correlation Between Xiandai Investment and Semiconductor Manufacturing
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By analyzing existing cross correlation between Xiandai Investment Co and Semiconductor Manufacturing Intl, you can compare the effects of market volatilities on Xiandai Investment and Semiconductor Manufacturing 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 Xiandai Investment with a short position of Semiconductor Manufacturing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiandai Investment and Semiconductor Manufacturing.
Diversification Opportunities for Xiandai Investment and Semiconductor Manufacturing
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Xiandai and Semiconductor is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Xiandai Investment Co and Semiconductor Manufacturing In in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Semiconductor Manufacturing and Xiandai Investment 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 Xiandai Investment Co are associated (or correlated) with Semiconductor Manufacturing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Semiconductor Manufacturing has no effect on the direction of Xiandai Investment i.e., Xiandai Investment and Semiconductor Manufacturing go up and down completely randomly.
Pair Corralation between Xiandai Investment and Semiconductor Manufacturing
Assuming the 90 days trading horizon Xiandai Investment Co is expected to under-perform the Semiconductor Manufacturing. But the stock apears to be less risky and, when comparing its historical volatility, Xiandai Investment Co is 2.09 times less risky than Semiconductor Manufacturing. The stock trades about -0.41 of its potential returns per unit of risk. The Semiconductor Manufacturing Intl is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 8,150 in Semiconductor Manufacturing Intl on October 15, 2024 and sell it today you would earn a total of 1,168 from holding Semiconductor Manufacturing Intl or generate 14.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiandai Investment Co vs. Semiconductor Manufacturing In
Performance |
| Timeline |
| Xiandai Investment |
| Semiconductor Manufacturing |
Xiandai Investment and Semiconductor Manufacturing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiandai Investment and Semiconductor Manufacturing
The main advantage of trading using opposite Xiandai Investment and Semiconductor Manufacturing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiandai Investment position performs unexpectedly, Semiconductor Manufacturing 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 Semiconductor Manufacturing will offset losses from the drop in Semiconductor Manufacturing's long position.| Xiandai Investment vs. Ningbo Homelink Eco iTech | Xiandai Investment vs. DO Home Collection | Xiandai Investment vs. Sharetronic Data Technology | Xiandai Investment vs. UE Furniture Co |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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