Correlation Between Shenzhen Hifuture and Ingenic Semiconductor
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By analyzing existing cross correlation between Shenzhen Hifuture Electric and Ingenic Semiconductor, you can compare the effects of market volatilities on Shenzhen Hifuture 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 Shenzhen Hifuture with a short position of Ingenic Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Hifuture and Ingenic Semiconductor.
Diversification Opportunities for Shenzhen Hifuture and Ingenic Semiconductor
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shenzhen and Ingenic is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Hifuture Electric and Ingenic Semiconductor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ingenic Semiconductor and Shenzhen Hifuture 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 Hifuture Electric 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 Shenzhen Hifuture i.e., Shenzhen Hifuture and Ingenic Semiconductor go up and down completely randomly.
Pair Corralation between Shenzhen Hifuture and Ingenic Semiconductor
Assuming the 90 days trading horizon Shenzhen Hifuture Electric is expected to under-perform the Ingenic Semiconductor. In addition to that, Shenzhen Hifuture is 1.06 times more volatile than Ingenic Semiconductor. It trades about -0.21 of its total potential returns per unit of risk. Ingenic Semiconductor is currently generating about -0.15 per unit of volatility. If you would invest 7,275 in Ingenic Semiconductor on October 26, 2024 and sell it today you would lose (694.00) from holding Ingenic Semiconductor or give up 9.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Hifuture Electric vs. Ingenic Semiconductor
Performance |
| Timeline |
| Shenzhen Hifuture |
| Ingenic Semiconductor |
Shenzhen Hifuture and Ingenic Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Hifuture and Ingenic Semiconductor
The main advantage of trading using opposite Shenzhen Hifuture and Ingenic Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Hifuture 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.| Shenzhen Hifuture vs. Shenyang Chemical Industry | Shenzhen Hifuture vs. Vohringer Home Technology | Shenzhen Hifuture vs. Xilong Chemical Co | Shenzhen Hifuture vs. Lier Chemical 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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