Correlation Between Shannon Semiconductor and Fujian Wanchen
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By analyzing existing cross correlation between Shannon Semiconductor Technology and Fujian Wanchen Biotechnology, you can compare the effects of market volatilities on Shannon Semiconductor and Fujian Wanchen 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 Fujian Wanchen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shannon Semiconductor and Fujian Wanchen.
Diversification Opportunities for Shannon Semiconductor and Fujian Wanchen
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shannon and Fujian is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Shannon Semiconductor Technolo and Fujian Wanchen Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Wanchen Biote 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 Fujian Wanchen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Wanchen Biote has no effect on the direction of Shannon Semiconductor i.e., Shannon Semiconductor and Fujian Wanchen go up and down completely randomly.
Pair Corralation between Shannon Semiconductor and Fujian Wanchen
Assuming the 90 days trading horizon Shannon Semiconductor is expected to generate 2.41 times less return on investment than Fujian Wanchen. In addition to that, Shannon Semiconductor is 1.17 times more volatile than Fujian Wanchen Biotechnology. It trades about 0.02 of its total potential returns per unit of risk. Fujian Wanchen Biotechnology is currently generating about 0.06 per unit of volatility. If you would invest 4,319 in Fujian Wanchen Biotechnology on October 12, 2024 and sell it today you would earn a total of 3,509 from holding Fujian Wanchen Biotechnology or generate 81.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shannon Semiconductor Technolo vs. Fujian Wanchen Biotechnology
Performance |
| Timeline |
| Shannon Semiconductor |
| Fujian Wanchen Biote |
Shannon Semiconductor and Fujian Wanchen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shannon Semiconductor and Fujian Wanchen
The main advantage of trading using opposite Shannon Semiconductor and Fujian Wanchen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shannon Semiconductor position performs unexpectedly, Fujian Wanchen 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 Fujian Wanchen will offset losses from the drop in Fujian Wanchen's long position.| Shannon Semiconductor vs. JuneYao Dairy Co | Shannon Semiconductor vs. Tibet Huayu Mining | Shannon Semiconductor vs. Shenzhen Topway Video | Shannon Semiconductor vs. Shengda Mining Co |
| Fujian Wanchen vs. Xiwang Foodstuffs Co | Fujian Wanchen vs. HaiXin Foods Co | Fujian Wanchen vs. Eastroc Beverage Group | Fujian Wanchen vs. Gan Yuan Foods |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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