Correlation Between Shenzhen Hifuture and Nexchip Semiconductor
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenzhen Hifuture Electric and Nexchip Semiconductor Corp, you can compare the effects of market volatilities on Shenzhen Hifuture and Nexchip 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 Nexchip Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Hifuture and Nexchip Semiconductor.
Diversification Opportunities for Shenzhen Hifuture and Nexchip Semiconductor
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Nexchip is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Hifuture Electric and Nexchip Semiconductor Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexchip 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 Nexchip Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nexchip Semiconductor has no effect on the direction of Shenzhen Hifuture i.e., Shenzhen Hifuture and Nexchip Semiconductor go up and down completely randomly.
Pair Corralation between Shenzhen Hifuture and Nexchip Semiconductor
Assuming the 90 days trading horizon Shenzhen Hifuture is expected to generate 10.59 times less return on investment than Nexchip Semiconductor. But when comparing it to its historical volatility, Shenzhen Hifuture Electric is 1.02 times less risky than Nexchip Semiconductor. It trades about 0.01 of its potential returns per unit of risk. Nexchip Semiconductor Corp is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,492 in Nexchip Semiconductor Corp on October 26, 2024 and sell it today you would earn a total of 918.00 from holding Nexchip Semiconductor Corp or generate 61.53% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 99.17% |
Values | Daily Returns |
Shenzhen Hifuture Electric vs. Nexchip Semiconductor Corp
Performance |
Timeline |
Shenzhen Hifuture |
Nexchip Semiconductor |
Shenzhen Hifuture and Nexchip Semiconductor Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shenzhen Hifuture and Nexchip Semiconductor
The main advantage of trading using opposite Shenzhen Hifuture and Nexchip Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Hifuture position performs unexpectedly, Nexchip 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 Nexchip Semiconductor will offset losses from the drop in Nexchip 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |