Correlation Between Shenzhen Hifuture and StarPower Semiconductor
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By analyzing existing cross correlation between Shenzhen Hifuture Electric and StarPower Semiconductor, you can compare the effects of market volatilities on Shenzhen Hifuture and StarPower 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 StarPower Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Hifuture and StarPower Semiconductor.
Diversification Opportunities for Shenzhen Hifuture and StarPower Semiconductor
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shenzhen and StarPower is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Hifuture Electric and StarPower Semiconductor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on StarPower 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 StarPower Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of StarPower Semiconductor has no effect on the direction of Shenzhen Hifuture i.e., Shenzhen Hifuture and StarPower Semiconductor go up and down completely randomly.
Pair Corralation between Shenzhen Hifuture and StarPower Semiconductor
Assuming the 90 days trading horizon Shenzhen Hifuture Electric is expected to generate 1.04 times more return on investment than StarPower Semiconductor. However, Shenzhen Hifuture is 1.04 times more volatile than StarPower Semiconductor. It trades about -0.02 of its potential returns per unit of risk. StarPower Semiconductor is currently generating about -0.07 per unit of risk. If you would invest 433.00 in Shenzhen Hifuture Electric on October 29, 2024 and sell it today you would lose (197.00) from holding Shenzhen Hifuture Electric or give up 45.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.77% |
| Values | Daily Returns |
Shenzhen Hifuture Electric vs. StarPower Semiconductor
Performance |
| Timeline |
| Shenzhen Hifuture |
| StarPower Semiconductor |
Shenzhen Hifuture and StarPower Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Hifuture and StarPower Semiconductor
The main advantage of trading using opposite Shenzhen Hifuture and StarPower Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Hifuture position performs unexpectedly, StarPower 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 StarPower Semiconductor will offset losses from the drop in StarPower Semiconductor's long position.| Shenzhen Hifuture vs. Gifore Agricultural Machinery | Shenzhen Hifuture vs. Unisplendour Corp | Shenzhen Hifuture vs. Chongqing Brewery Co | Shenzhen Hifuture vs. Huasi Agricultural Development |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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