Correlation Between SI-TECH Information and Shannon Semiconductor
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By analyzing existing cross correlation between SI TECH Information Technology and Shannon Semiconductor Technology, you can compare the effects of market volatilities on SI-TECH Information and Shannon Semiconductor 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 SI-TECH Information with a short position of Shannon Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of SI-TECH Information and Shannon Semiconductor.
Diversification Opportunities for SI-TECH Information and Shannon Semiconductor
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SI-TECH and Shannon is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding SI TECH Information Technology and Shannon Semiconductor Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shannon Semiconductor and SI-TECH Information 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 SI TECH Information Technology are associated (or correlated) with Shannon Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shannon Semiconductor has no effect on the direction of SI-TECH Information i.e., SI-TECH Information and Shannon Semiconductor go up and down completely randomly.
Pair Corralation between SI-TECH Information and Shannon Semiconductor
Assuming the 90 days trading horizon SI TECH Information Technology is expected to generate 2.61 times more return on investment than Shannon Semiconductor. However, SI-TECH Information is 2.61 times more volatile than Shannon Semiconductor Technology. It trades about 0.25 of its potential returns per unit of risk. Shannon Semiconductor Technology is currently generating about 0.16 per unit of risk. If you would invest 996.00 in SI TECH Information Technology on November 6, 2024 and sell it today you would earn a total of 234.00 from holding SI TECH Information Technology or generate 23.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SI TECH Information Technology vs. Shannon Semiconductor Technolo
Performance |
| Timeline |
| SI TECH Information |
| Shannon Semiconductor |
SI-TECH Information and Shannon Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SI-TECH Information and Shannon Semiconductor
The main advantage of trading using opposite SI-TECH Information and Shannon Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SI-TECH Information position performs unexpectedly, Shannon Semiconductor 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 Shannon Semiconductor will offset losses from the drop in Shannon Semiconductor's long position.| SI-TECH Information vs. China State Construction | SI-TECH Information vs. Poly Real Estate | SI-TECH Information vs. China Vanke Co | SI-TECH Information vs. China Merchants Shekou |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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