Correlation Between Shenzhen Hifuture and Lontium Semiconductor
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By analyzing existing cross correlation between Shenzhen Hifuture Electric and Lontium Semiconductor Corp, you can compare the effects of market volatilities on Shenzhen Hifuture and Lontium 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 Lontium Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Hifuture and Lontium Semiconductor.
Diversification Opportunities for Shenzhen Hifuture and Lontium Semiconductor
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shenzhen and Lontium is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Hifuture Electric and Lontium Semiconductor Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lontium 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 Lontium Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lontium Semiconductor has no effect on the direction of Shenzhen Hifuture i.e., Shenzhen Hifuture and Lontium Semiconductor go up and down completely randomly.
Pair Corralation between Shenzhen Hifuture and Lontium Semiconductor
Assuming the 90 days trading horizon Shenzhen Hifuture Electric is expected to under-perform the Lontium Semiconductor. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen Hifuture Electric is 1.59 times less risky than Lontium Semiconductor. The stock trades about -0.09 of its potential returns per unit of risk. The Lontium Semiconductor Corp is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 6,010 in Lontium Semiconductor Corp on October 26, 2024 and sell it today you would earn a total of 3,348 from holding Lontium Semiconductor Corp or generate 55.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.73% |
| Values | Daily Returns |
Shenzhen Hifuture Electric vs. Lontium Semiconductor Corp
Performance |
| Timeline |
| Shenzhen Hifuture |
| Lontium Semiconductor |
Shenzhen Hifuture and Lontium Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Hifuture and Lontium Semiconductor
The main advantage of trading using opposite Shenzhen Hifuture and Lontium Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Hifuture position performs unexpectedly, Lontium 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 Lontium Semiconductor will offset losses from the drop in Lontium 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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