Correlation Between Shannon Semiconductor and Guangdong Xiongsu
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By analyzing existing cross correlation between Shannon Semiconductor Technology and Guangdong Xiongsu Technology, you can compare the effects of market volatilities on Shannon Semiconductor and Guangdong Xiongsu 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 Guangdong Xiongsu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shannon Semiconductor and Guangdong Xiongsu.
Diversification Opportunities for Shannon Semiconductor and Guangdong Xiongsu
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shannon and Guangdong is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Shannon Semiconductor Technolo and Guangdong Xiongsu Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Xiongsu 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 Guangdong Xiongsu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Xiongsu has no effect on the direction of Shannon Semiconductor i.e., Shannon Semiconductor and Guangdong Xiongsu go up and down completely randomly.
Pair Corralation between Shannon Semiconductor and Guangdong Xiongsu
Assuming the 90 days trading horizon Shannon Semiconductor Technology is expected to generate 0.91 times more return on investment than Guangdong Xiongsu. However, Shannon Semiconductor Technology is 1.1 times less risky than Guangdong Xiongsu. It trades about 0.01 of its potential returns per unit of risk. Guangdong Xiongsu Technology is currently generating about 0.0 per unit of risk. If you would invest 3,256 in Shannon Semiconductor Technology on October 26, 2024 and sell it today you would lose (447.00) from holding Shannon Semiconductor Technology or give up 13.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shannon Semiconductor Technolo vs. Guangdong Xiongsu Technology
Performance |
| Timeline |
| Shannon Semiconductor |
| Guangdong Xiongsu |
Shannon Semiconductor and Guangdong Xiongsu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shannon Semiconductor and Guangdong Xiongsu
The main advantage of trading using opposite Shannon Semiconductor and Guangdong Xiongsu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shannon Semiconductor position performs unexpectedly, Guangdong Xiongsu 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 Guangdong Xiongsu will offset losses from the drop in Guangdong Xiongsu's long position.| Shannon Semiconductor vs. Zhengzhou Coal Mining | Shannon Semiconductor vs. Guangdong Jingyi Metal | Shannon Semiconductor vs. Guosheng Financial Holding | Shannon Semiconductor vs. Rising Nonferrous Metals |
| Guangdong Xiongsu vs. Ming Yang Smart | Guangdong Xiongsu vs. 159681 | Guangdong Xiongsu vs. 159005 | Guangdong Xiongsu vs. Loctek Ergonomic Technology |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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