Correlation Between Ingenic Semiconductor and China Asset
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By analyzing existing cross correlation between Ingenic Semiconductor and China Asset Management, you can compare the effects of market volatilities on Ingenic Semiconductor and China Asset 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 China Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ingenic Semiconductor and China Asset.
Diversification Opportunities for Ingenic Semiconductor and China Asset
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ingenic and China is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Ingenic Semiconductor and China Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Asset Management 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 China Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Asset Management has no effect on the direction of Ingenic Semiconductor i.e., Ingenic Semiconductor and China Asset go up and down completely randomly.
Pair Corralation between Ingenic Semiconductor and China Asset
Assuming the 90 days trading horizon Ingenic Semiconductor is expected to under-perform the China Asset. In addition to that, Ingenic Semiconductor is 2.27 times more volatile than China Asset Management. It trades about -0.12 of its total potential returns per unit of risk. China Asset Management is currently generating about 0.46 per unit of volatility. If you would invest 324.00 in China Asset Management on October 10, 2024 and sell it today you would earn a total of 46.00 from holding China Asset Management or generate 14.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ingenic Semiconductor vs. China Asset Management
Performance |
| Timeline |
| Ingenic Semiconductor |
| China Asset Management |
Ingenic Semiconductor and China Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ingenic Semiconductor and China Asset
The main advantage of trading using opposite Ingenic Semiconductor and China Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ingenic Semiconductor position performs unexpectedly, China Asset 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 China Asset will offset losses from the drop in China Asset's long position.The idea behind Ingenic Semiconductor and China Asset Management 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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