Correlation Between China Express and StarPower Semiconductor
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By analyzing existing cross correlation between China Express Airlines and StarPower Semiconductor, you can compare the effects of market volatilities on China Express 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 China Express with a short position of StarPower Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Express and StarPower Semiconductor.
Diversification Opportunities for China Express and StarPower Semiconductor
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and StarPower is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding China Express Airlines and StarPower Semiconductor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on StarPower Semiconductor and China Express 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 China Express Airlines 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 China Express i.e., China Express and StarPower Semiconductor go up and down completely randomly.
Pair Corralation between China Express and StarPower Semiconductor
Assuming the 90 days trading horizon China Express Airlines is expected to generate 0.81 times more return on investment than StarPower Semiconductor. However, China Express Airlines is 1.24 times less risky than StarPower Semiconductor. It trades about -0.02 of its potential returns per unit of risk. StarPower Semiconductor is currently generating about -0.06 per unit of risk. If you would invest 1,270 in China Express Airlines on August 24, 2024 and sell it today you would lose (427.00) from holding China Express Airlines or give up 33.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Express Airlines vs. StarPower Semiconductor
Performance |
| Timeline |
| China Express Airlines |
| StarPower Semiconductor |
China Express and StarPower Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Express and StarPower Semiconductor
The main advantage of trading using opposite China Express and StarPower Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Express 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.| China Express vs. China Reform Health | China Express vs. PKU HealthCare Corp | China Express vs. Meinian Onehealth Healthcare | China Express vs. ChengDu Hi Tech Development |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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