Correlation Between Beijing SuperMap and Southchip Semiconductor
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By analyzing existing cross correlation between Beijing SuperMap Software and Southchip Semiconductor Technology, you can compare the effects of market volatilities on Beijing SuperMap and Southchip 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 Beijing SuperMap with a short position of Southchip Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing SuperMap and Southchip Semiconductor.
Diversification Opportunities for Beijing SuperMap and Southchip Semiconductor
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Beijing and Southchip is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Beijing SuperMap Software and Southchip Semiconductor Techno in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southchip Semiconductor and Beijing SuperMap 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 Beijing SuperMap Software are associated (or correlated) with Southchip Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southchip Semiconductor has no effect on the direction of Beijing SuperMap i.e., Beijing SuperMap and Southchip Semiconductor go up and down completely randomly.
Pair Corralation between Beijing SuperMap and Southchip Semiconductor
Assuming the 90 days trading horizon Beijing SuperMap Software is expected to generate 1.06 times more return on investment than Southchip Semiconductor. However, Beijing SuperMap is 1.06 times more volatile than Southchip Semiconductor Technology. It trades about 0.08 of its potential returns per unit of risk. Southchip Semiconductor Technology is currently generating about 0.07 per unit of risk. If you would invest 1,390 in Beijing SuperMap Software on September 3, 2024 and sell it today you would earn a total of 441.00 from holding Beijing SuperMap Software or generate 31.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing SuperMap Software vs. Southchip Semiconductor Techno
Performance |
| Timeline |
| Beijing SuperMap Software |
| Southchip Semiconductor |
Beijing SuperMap and Southchip Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing SuperMap and Southchip Semiconductor
The main advantage of trading using opposite Beijing SuperMap and Southchip Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing SuperMap position performs unexpectedly, Southchip 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 Southchip Semiconductor will offset losses from the drop in Southchip Semiconductor's long position.| Beijing SuperMap vs. Tsingtao Brewery Co | Beijing SuperMap vs. Panda Financial Holding | Beijing SuperMap vs. Qilu Bank Co | Beijing SuperMap vs. HeNan Splendor Science |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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