Correlation Between Shenzhen Hifuture and Semiconductor Manufacturing
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By analyzing existing cross correlation between Shenzhen Hifuture Electric and Semiconductor Manufacturing Electronics, you can compare the effects of market volatilities on Shenzhen Hifuture and Semiconductor Manufacturing 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 Semiconductor Manufacturing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Hifuture and Semiconductor Manufacturing.
Diversification Opportunities for Shenzhen Hifuture and Semiconductor Manufacturing
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenzhen and Semiconductor is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Hifuture Electric and Semiconductor Manufacturing El in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Semiconductor Manufacturing 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 Semiconductor Manufacturing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Semiconductor Manufacturing has no effect on the direction of Shenzhen Hifuture i.e., Shenzhen Hifuture and Semiconductor Manufacturing go up and down completely randomly.
Pair Corralation between Shenzhen Hifuture and Semiconductor Manufacturing
Assuming the 90 days trading horizon Shenzhen Hifuture Electric is expected to generate 1.06 times more return on investment than Semiconductor Manufacturing. However, Shenzhen Hifuture is 1.06 times more volatile than Semiconductor Manufacturing Electronics. It trades about 0.31 of its potential returns per unit of risk. Semiconductor Manufacturing Electronics is currently generating about 0.02 per unit of risk. If you would invest 273.00 in Shenzhen Hifuture Electric on September 13, 2024 and sell it today you would earn a total of 58.00 from holding Shenzhen Hifuture Electric or generate 21.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Hifuture Electric vs. Semiconductor Manufacturing El
Performance |
| Timeline |
| Shenzhen Hifuture |
| Semiconductor Manufacturing |
Shenzhen Hifuture and Semiconductor Manufacturing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Hifuture and Semiconductor Manufacturing
The main advantage of trading using opposite Shenzhen Hifuture and Semiconductor Manufacturing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Hifuture position performs unexpectedly, Semiconductor Manufacturing 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 Semiconductor Manufacturing will offset losses from the drop in Semiconductor Manufacturing's long position.| Shenzhen Hifuture vs. Agricultural Bank of | Shenzhen Hifuture vs. Industrial and Commercial | Shenzhen Hifuture vs. Bank of China | Shenzhen Hifuture vs. PetroChina Co Ltd |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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