Correlation Between Cloud Live and Lontium Semiconductor
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By analyzing existing cross correlation between Cloud Live Technology and Lontium Semiconductor Corp, you can compare the effects of market volatilities on Cloud Live 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 Cloud Live with a short position of Lontium Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cloud Live and Lontium Semiconductor.
Diversification Opportunities for Cloud Live and Lontium Semiconductor
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cloud and Lontium is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Cloud Live Technology and Lontium Semiconductor Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lontium Semiconductor and Cloud Live 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 Cloud Live Technology 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 Cloud Live i.e., Cloud Live and Lontium Semiconductor go up and down completely randomly.
Pair Corralation between Cloud Live and Lontium Semiconductor
Assuming the 90 days trading horizon Cloud Live Technology is expected to under-perform the Lontium Semiconductor. But the stock apears to be less risky and, when comparing its historical volatility, Cloud Live Technology is 1.16 times less risky than Lontium Semiconductor. The stock trades about -0.03 of its potential returns per unit of risk. The Lontium Semiconductor Corp is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 5,782 in Lontium Semiconductor Corp on November 5, 2024 and sell it today you would earn a total of 3,202 from holding Lontium Semiconductor Corp or generate 55.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.95% |
| Values | Daily Returns |
Cloud Live Technology vs. Lontium Semiconductor Corp
Performance |
| Timeline |
| Cloud Live Technology |
| Lontium Semiconductor |
Cloud Live and Lontium Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cloud Live and Lontium Semiconductor
The main advantage of trading using opposite Cloud Live and Lontium Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cloud Live 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.| Cloud Live vs. Linewell Software Co | Cloud Live vs. Qingdao Choho Industrial | Cloud Live vs. Gem Year Industrial Co | Cloud Live vs. Hainan Mining Co |
| Lontium Semiconductor vs. Lier Chemical Co | Lontium Semiconductor vs. Beijing Jiaman Dress | Lontium Semiconductor vs. Hubei Xingfa Chemicals | Lontium Semiconductor vs. Liuzhou Chemical Industry |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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