Correlation Between Shenzhen Coship and Loongson Technology
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By analyzing existing cross correlation between Shenzhen Coship Electronics and Loongson Technology Corp, you can compare the effects of market volatilities on Shenzhen Coship and Loongson Technology 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 Shenzhen Coship with a short position of Loongson Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Coship and Loongson Technology.
Diversification Opportunities for Shenzhen Coship and Loongson Technology
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shenzhen and Loongson is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Coship Electronics and Loongson Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loongson Technology Corp and Shenzhen Coship 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 Shenzhen Coship Electronics are associated (or correlated) with Loongson Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loongson Technology Corp has no effect on the direction of Shenzhen Coship i.e., Shenzhen Coship and Loongson Technology go up and down completely randomly.
Pair Corralation between Shenzhen Coship and Loongson Technology
Assuming the 90 days trading horizon Shenzhen Coship Electronics is expected to generate 1.57 times more return on investment than Loongson Technology. However, Shenzhen Coship is 1.57 times more volatile than Loongson Technology Corp. It trades about 0.13 of its potential returns per unit of risk. Loongson Technology Corp is currently generating about -0.41 per unit of risk. If you would invest 615.00 in Shenzhen Coship Electronics on October 14, 2024 and sell it today you would earn a total of 62.00 from holding Shenzhen Coship Electronics or generate 10.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Coship Electronics vs. Loongson Technology Corp
Performance |
| Timeline |
| Shenzhen Coship Elec |
| Loongson Technology Corp |
Shenzhen Coship and Loongson Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Coship and Loongson Technology
The main advantage of trading using opposite Shenzhen Coship and Loongson Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Coship position performs unexpectedly, Loongson Technology 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 Loongson Technology will offset losses from the drop in Loongson Technology's long position.| Shenzhen Coship vs. Lontium Semiconductor Corp | Shenzhen Coship vs. Southchip Semiconductor Technology | Shenzhen Coship vs. Nanxing Furniture Machinery | Shenzhen Coship vs. Union Semiconductor 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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