Correlation Between Shenzhen Hifuture and Southchip Semiconductor
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By analyzing existing cross correlation between Shenzhen Hifuture Electric and Southchip Semiconductor Technology, you can compare the effects of market volatilities on Shenzhen Hifuture and Southchip 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 Southchip Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Hifuture and Southchip Semiconductor.
Diversification Opportunities for Shenzhen Hifuture and Southchip Semiconductor
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shenzhen and Southchip is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Hifuture Electric and Southchip Semiconductor Techno in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southchip 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 Southchip Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southchip Semiconductor has no effect on the direction of Shenzhen Hifuture i.e., Shenzhen Hifuture and Southchip Semiconductor go up and down completely randomly.
Pair Corralation between Shenzhen Hifuture and Southchip Semiconductor
Assuming the 90 days trading horizon Shenzhen Hifuture Electric is expected to generate 1.06 times more return on investment than Southchip Semiconductor. However, Shenzhen Hifuture is 1.06 times more volatile than Southchip Semiconductor Technology. It trades about 0.25 of its potential returns per unit of risk. Southchip Semiconductor Technology is currently generating about 0.21 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 42.00 from holding Shenzhen Hifuture Electric or generate 15.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Hifuture Electric vs. Southchip Semiconductor Techno
Performance |
| Timeline |
| Shenzhen Hifuture |
| Southchip Semiconductor |
Shenzhen Hifuture and Southchip Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Hifuture and Southchip Semiconductor
The main advantage of trading using opposite Shenzhen Hifuture and Southchip Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Hifuture position performs unexpectedly, Southchip 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 Southchip Semiconductor will offset losses from the drop in Southchip Semiconductor's long position.| Shenzhen Hifuture vs. China Nonferrous Metal | Shenzhen Hifuture vs. Xinya Electronic Co | Shenzhen Hifuture vs. Gansu Yasheng Industrial | Shenzhen Hifuture vs. Shenzhen Clou Electronics |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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