Correlation Between Xiamen Hexing and Nexchip Semiconductor
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By analyzing existing cross correlation between Xiamen Hexing Packaging and Nexchip Semiconductor Corp, you can compare the effects of market volatilities on Xiamen Hexing 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 Xiamen Hexing with a short position of Nexchip Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Hexing and Nexchip Semiconductor.
Diversification Opportunities for Xiamen Hexing and Nexchip Semiconductor
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xiamen and Nexchip is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Hexing Packaging and Nexchip Semiconductor Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexchip Semiconductor and Xiamen Hexing 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 Xiamen Hexing Packaging 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 Xiamen Hexing i.e., Xiamen Hexing and Nexchip Semiconductor go up and down completely randomly.
Pair Corralation between Xiamen Hexing and Nexchip Semiconductor
Assuming the 90 days trading horizon Xiamen Hexing Packaging is expected to generate 0.48 times more return on investment than Nexchip Semiconductor. However, Xiamen Hexing Packaging is 2.08 times less risky than Nexchip Semiconductor. It trades about 0.28 of its potential returns per unit of risk. Nexchip Semiconductor Corp is currently generating about 0.04 per unit of risk. If you would invest 303.00 in Xiamen Hexing Packaging on September 13, 2024 and sell it today you would earn a total of 29.00 from holding Xiamen Hexing Packaging or generate 9.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Hexing Packaging vs. Nexchip Semiconductor Corp
Performance |
| Timeline |
| Xiamen Hexing Packaging |
| Nexchip Semiconductor |
Xiamen Hexing and Nexchip Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Hexing and Nexchip Semiconductor
The main advantage of trading using opposite Xiamen Hexing and Nexchip Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Hexing 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.| Xiamen Hexing vs. Kontour Medical Technology | Xiamen Hexing vs. Double Medical Technology | Xiamen Hexing vs. Xiangyu Medical Co | Xiamen Hexing vs. Xian International Medical |
| Nexchip Semiconductor vs. Hua Xia Bank | Nexchip Semiconductor vs. Guosheng Financial Holding | Nexchip Semiconductor vs. Xinjiang Tianrun Dairy | Nexchip Semiconductor vs. Guilin Seamild Foods |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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