Correlation Between Western Metal and Ingenic Semiconductor
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By analyzing existing cross correlation between Western Metal Materials and Ingenic Semiconductor, you can compare the effects of market volatilities on Western Metal 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 Western Metal with a short position of Ingenic Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Metal and Ingenic Semiconductor.
Diversification Opportunities for Western Metal and Ingenic Semiconductor
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Western and Ingenic is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Western Metal Materials and Ingenic Semiconductor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ingenic Semiconductor and Western Metal 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 Western Metal Materials 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 Western Metal i.e., Western Metal and Ingenic Semiconductor go up and down completely randomly.
Pair Corralation between Western Metal and Ingenic Semiconductor
Assuming the 90 days trading horizon Western Metal Materials is expected to generate 0.77 times more return on investment than Ingenic Semiconductor. However, Western Metal Materials is 1.3 times less risky than Ingenic Semiconductor. It trades about 0.02 of its potential returns per unit of risk. Ingenic Semiconductor is currently generating about 0.0 per unit of risk. If you would invest 1,645 in Western Metal Materials on October 12, 2024 and sell it today you would earn a total of 70.00 from holding Western Metal Materials or generate 4.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Metal Materials vs. Ingenic Semiconductor
Performance |
| Timeline |
| Western Metal Materials |
| Ingenic Semiconductor |
Western Metal and Ingenic Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Metal and Ingenic Semiconductor
The main advantage of trading using opposite Western Metal and Ingenic Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Metal 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.| Western Metal vs. Xiandai Investment Co | Western Metal vs. Jiangsu Yueda Investment | Western Metal vs. Hunan Investment Group | Western Metal vs. Nanjing Vishee Medical |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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