Correlation Between Jiangxi Hengda and StarPower Semiconductor
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By analyzing existing cross correlation between Jiangxi Hengda Hi Tech and StarPower Semiconductor, you can compare the effects of market volatilities on Jiangxi Hengda 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 Jiangxi Hengda with a short position of StarPower Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Hengda and StarPower Semiconductor.
Diversification Opportunities for Jiangxi Hengda and StarPower Semiconductor
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jiangxi and StarPower is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Hengda Hi Tech and StarPower Semiconductor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on StarPower Semiconductor and Jiangxi Hengda 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 Jiangxi Hengda Hi Tech 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 Jiangxi Hengda i.e., Jiangxi Hengda and StarPower Semiconductor go up and down completely randomly.
Pair Corralation between Jiangxi Hengda and StarPower Semiconductor
Assuming the 90 days trading horizon Jiangxi Hengda Hi Tech is expected to under-perform the StarPower Semiconductor. In addition to that, Jiangxi Hengda is 2.51 times more volatile than StarPower Semiconductor. It trades about -0.24 of its total potential returns per unit of risk. StarPower Semiconductor is currently generating about -0.46 per unit of volatility. If you would invest 9,829 in StarPower Semiconductor on October 12, 2024 and sell it today you would lose (1,575) from holding StarPower Semiconductor or give up 16.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Hengda Hi Tech vs. StarPower Semiconductor
Performance |
| Timeline |
| Jiangxi Hengda Hi |
| StarPower Semiconductor |
Jiangxi Hengda and StarPower Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Hengda and StarPower Semiconductor
The main advantage of trading using opposite Jiangxi Hengda and StarPower Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Hengda 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.| Jiangxi Hengda vs. Nanjing Vishee Medical | Jiangxi Hengda vs. Xiangyu Medical Co | Jiangxi Hengda vs. Shanghai Sanyou Medical | Jiangxi Hengda vs. Medprin Regenerative Medical |
| StarPower Semiconductor vs. Unisplendour Corp | StarPower Semiconductor vs. GRG Banking Equipment | StarPower Semiconductor vs. Hua Xia Bank | StarPower Semiconductor vs. Jiangxi Hengda Hi Tech |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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