Correlation Between Shannon Semiconductor and Kangyue Technology
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By analyzing existing cross correlation between Shannon Semiconductor Technology and Kangyue Technology Co, you can compare the effects of market volatilities on Shannon Semiconductor and Kangyue Technology 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 Shannon Semiconductor with a short position of Kangyue Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shannon Semiconductor and Kangyue Technology.
Diversification Opportunities for Shannon Semiconductor and Kangyue Technology
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shannon and Kangyue is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Shannon Semiconductor Technolo and Kangyue Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kangyue Technology and Shannon 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 Shannon Semiconductor Technology are associated (or correlated) with Kangyue Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kangyue Technology has no effect on the direction of Shannon Semiconductor i.e., Shannon Semiconductor and Kangyue Technology go up and down completely randomly.
Pair Corralation between Shannon Semiconductor and Kangyue Technology
Assuming the 90 days trading horizon Shannon Semiconductor Technology is expected to generate 0.4 times more return on investment than Kangyue Technology. However, Shannon Semiconductor Technology is 2.5 times less risky than Kangyue Technology. It trades about 0.12 of its potential returns per unit of risk. Kangyue Technology Co is currently generating about -0.19 per unit of risk. If you would invest 2,675 in Shannon Semiconductor Technology on November 4, 2024 and sell it today you would earn a total of 107.00 from holding Shannon Semiconductor Technology or generate 4.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shannon Semiconductor Technolo vs. Kangyue Technology Co
Performance |
| Timeline |
| Shannon Semiconductor |
| Kangyue Technology |
Shannon Semiconductor and Kangyue Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shannon Semiconductor and Kangyue Technology
The main advantage of trading using opposite Shannon Semiconductor and Kangyue Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shannon Semiconductor position performs unexpectedly, Kangyue Technology 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 Kangyue Technology will offset losses from the drop in Kangyue Technology's long position.| Shannon Semiconductor vs. Qtone Education Group | Shannon Semiconductor vs. Keda Clean Energy | Shannon Semiconductor vs. Beijing Kaiwen Education | Shannon Semiconductor vs. COL Digital Publishing |
| Kangyue Technology vs. Shandong Polymer Biochemicals | Kangyue Technology vs. Ningxia Younglight Chemicals | Kangyue Technology vs. Industrial Bank Co | Kangyue Technology 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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