Correlation Between Ingenic Semiconductor and Xiandai Investment
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ingenic Semiconductor and Xiandai Investment Co, you can compare the effects of market volatilities on Ingenic Semiconductor and Xiandai Investment 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 Xiandai Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ingenic Semiconductor and Xiandai Investment.
Diversification Opportunities for Ingenic Semiconductor and Xiandai Investment
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ingenic and Xiandai is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Ingenic Semiconductor and Xiandai Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiandai Investment 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 Xiandai Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiandai Investment has no effect on the direction of Ingenic Semiconductor i.e., Ingenic Semiconductor and Xiandai Investment go up and down completely randomly.
Pair Corralation between Ingenic Semiconductor and Xiandai Investment
Assuming the 90 days trading horizon Ingenic Semiconductor is expected to generate 1.76 times more return on investment than Xiandai Investment. However, Ingenic Semiconductor is 1.76 times more volatile than Xiandai Investment Co. It trades about -0.13 of its potential returns per unit of risk. Xiandai Investment Co is currently generating about -0.26 per unit of risk. If you would invest 6,918 in Ingenic Semiconductor on October 11, 2024 and sell it today you would lose (657.00) from holding Ingenic Semiconductor or give up 9.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Ingenic Semiconductor vs. Xiandai Investment Co
Performance |
| Timeline |
| Ingenic Semiconductor |
| Xiandai Investment |
Ingenic Semiconductor and Xiandai Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ingenic Semiconductor and Xiandai Investment
The main advantage of trading using opposite Ingenic Semiconductor and Xiandai Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ingenic Semiconductor position performs unexpectedly, Xiandai Investment 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 Xiandai Investment will offset losses from the drop in Xiandai Investment's long position.The idea behind Ingenic Semiconductor and Xiandai Investment Co 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.
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |