Correlation Between Shantou Wanshun and StarPower Semiconductor
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By analyzing existing cross correlation between Shantou Wanshun Package and StarPower Semiconductor, you can compare the effects of market volatilities on Shantou Wanshun 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 Shantou Wanshun with a short position of StarPower Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shantou Wanshun and StarPower Semiconductor.
Diversification Opportunities for Shantou Wanshun and StarPower Semiconductor
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shantou and StarPower is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Shantou Wanshun Package and StarPower Semiconductor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on StarPower Semiconductor and Shantou Wanshun 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 Shantou Wanshun Package 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 Shantou Wanshun i.e., Shantou Wanshun and StarPower Semiconductor go up and down completely randomly.
Pair Corralation between Shantou Wanshun and StarPower Semiconductor
Assuming the 90 days trading horizon Shantou Wanshun Package is expected to generate 0.97 times more return on investment than StarPower Semiconductor. However, Shantou Wanshun Package is 1.03 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 909.00 in Shantou Wanshun Package on September 14, 2024 and sell it today you would lose (327.00) from holding Shantou Wanshun Package or give up 35.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shantou Wanshun Package vs. StarPower Semiconductor
Performance |
| Timeline |
| Shantou Wanshun Package |
| StarPower Semiconductor |
Shantou Wanshun and StarPower Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shantou Wanshun and StarPower Semiconductor
The main advantage of trading using opposite Shantou Wanshun and StarPower Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shantou Wanshun 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.| Shantou Wanshun vs. Zijin Mining Group | Shantou Wanshun vs. Wanhua Chemical Group | Shantou Wanshun vs. Baoshan Iron Steel | Shantou Wanshun vs. Shandong Gold Mining |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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