Correlation Between HeNan Splendor and StarPower Semiconductor
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By analyzing existing cross correlation between HeNan Splendor Science and StarPower Semiconductor, you can compare the effects of market volatilities on HeNan Splendor and StarPower 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 HeNan Splendor with a short position of StarPower Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of HeNan Splendor and StarPower Semiconductor.
Diversification Opportunities for HeNan Splendor and StarPower Semiconductor
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between HeNan and StarPower is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding HeNan Splendor Science and StarPower Semiconductor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on StarPower Semiconductor and HeNan Splendor 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 HeNan Splendor Science are associated (or correlated) with StarPower Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of StarPower Semiconductor has no effect on the direction of HeNan Splendor i.e., HeNan Splendor and StarPower Semiconductor go up and down completely randomly.
Pair Corralation between HeNan Splendor and StarPower Semiconductor
Assuming the 90 days trading horizon HeNan Splendor Science is expected to generate 0.97 times more return on investment than StarPower Semiconductor. However, HeNan Splendor Science is 1.03 times less risky than StarPower Semiconductor. It trades about 0.06 of its potential returns per unit of risk. StarPower Semiconductor is currently generating about 0.02 per unit of risk. If you would invest 982.00 in HeNan Splendor Science on September 3, 2024 and sell it today you would earn a total of 66.00 from holding HeNan Splendor Science or generate 6.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
HeNan Splendor Science vs. StarPower Semiconductor
Performance |
| Timeline |
| HeNan Splendor Science |
| StarPower Semiconductor |
HeNan Splendor and StarPower Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HeNan Splendor and StarPower Semiconductor
The main advantage of trading using opposite HeNan Splendor and StarPower Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HeNan Splendor position performs unexpectedly, StarPower 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 StarPower Semiconductor will offset losses from the drop in StarPower Semiconductor's long position.| HeNan Splendor vs. Allied Machinery Co | HeNan Splendor vs. China Railway Construction | HeNan Splendor vs. Anhui Huilong Agricultural | HeNan Splendor vs. Yangmei Chemical Co |
| StarPower Semiconductor vs. Agricultural Bank of | StarPower Semiconductor vs. China Construction Bank | StarPower Semiconductor vs. Postal Savings Bank | StarPower Semiconductor vs. Bank of Communications |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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