Correlation Between Ingenic Semiconductor and Zoomlion Heavy
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By analyzing existing cross correlation between Ingenic Semiconductor and Zoomlion Heavy Industry, you can compare the effects of market volatilities on Ingenic Semiconductor and Zoomlion Heavy 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 Ingenic Semiconductor with a short position of Zoomlion Heavy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ingenic Semiconductor and Zoomlion Heavy.
Diversification Opportunities for Ingenic Semiconductor and Zoomlion Heavy
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ingenic and Zoomlion is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Ingenic Semiconductor and Zoomlion Heavy Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoomlion Heavy Industry and Ingenic Semiconductor 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 Ingenic Semiconductor are associated (or correlated) with Zoomlion Heavy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoomlion Heavy Industry has no effect on the direction of Ingenic Semiconductor i.e., Ingenic Semiconductor and Zoomlion Heavy go up and down completely randomly.
Pair Corralation between Ingenic Semiconductor and Zoomlion Heavy
Assuming the 90 days trading horizon Ingenic Semiconductor is expected to under-perform the Zoomlion Heavy. In addition to that, Ingenic Semiconductor is 1.39 times more volatile than Zoomlion Heavy Industry. It trades about -0.2 of its total potential returns per unit of risk. Zoomlion Heavy Industry is currently generating about 0.06 per unit of volatility. If you would invest 717.00 in Zoomlion Heavy Industry on October 30, 2024 and sell it today you would earn a total of 15.00 from holding Zoomlion Heavy Industry or generate 2.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Ingenic Semiconductor vs. Zoomlion Heavy Industry
Performance |
| Timeline |
| Ingenic Semiconductor |
| Zoomlion Heavy Industry |
Ingenic Semiconductor and Zoomlion Heavy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ingenic Semiconductor and Zoomlion Heavy
The main advantage of trading using opposite Ingenic Semiconductor and Zoomlion Heavy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ingenic Semiconductor position performs unexpectedly, Zoomlion Heavy 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 Zoomlion Heavy will offset losses from the drop in Zoomlion Heavy's long position.The idea behind Ingenic Semiconductor and Zoomlion Heavy Industry pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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