Correlation Between Shannon Semiconductor and Xiamen Goldenhome
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By analyzing existing cross correlation between Shannon Semiconductor Technology and Xiamen Goldenhome Co, you can compare the effects of market volatilities on Shannon Semiconductor and Xiamen Goldenhome 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 Xiamen Goldenhome. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shannon Semiconductor and Xiamen Goldenhome.
Diversification Opportunities for Shannon Semiconductor and Xiamen Goldenhome
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Shannon and Xiamen is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Shannon Semiconductor Technolo and Xiamen Goldenhome Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Goldenhome 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 Xiamen Goldenhome. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Goldenhome has no effect on the direction of Shannon Semiconductor i.e., Shannon Semiconductor and Xiamen Goldenhome go up and down completely randomly.
Pair Corralation between Shannon Semiconductor and Xiamen Goldenhome
Assuming the 90 days trading horizon Shannon Semiconductor Technology is expected to generate 1.08 times more return on investment than Xiamen Goldenhome. However, Shannon Semiconductor is 1.08 times more volatile than Xiamen Goldenhome Co. It trades about -0.04 of its potential returns per unit of risk. Xiamen Goldenhome Co is currently generating about -0.12 per unit of risk. If you would invest 2,849 in Shannon Semiconductor Technology on November 1, 2024 and sell it today you would lose (67.00) from holding Shannon Semiconductor Technology or give up 2.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shannon Semiconductor Technolo vs. Xiamen Goldenhome Co
Performance |
| Timeline |
| Shannon Semiconductor |
| Xiamen Goldenhome |
Shannon Semiconductor and Xiamen Goldenhome Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shannon Semiconductor and Xiamen Goldenhome
The main advantage of trading using opposite Shannon Semiconductor and Xiamen Goldenhome positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shannon Semiconductor position performs unexpectedly, Xiamen Goldenhome 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 Xiamen Goldenhome will offset losses from the drop in Xiamen Goldenhome's long position.The idea behind Shannon Semiconductor Technology and Xiamen Goldenhome 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.
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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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