Correlation Between Shengtak New and Nexchip Semiconductor
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By analyzing existing cross correlation between Shengtak New Material and Nexchip Semiconductor Corp, you can compare the effects of market volatilities on Shengtak New and Nexchip 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 Shengtak New with a short position of Nexchip Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shengtak New and Nexchip Semiconductor.
Diversification Opportunities for Shengtak New and Nexchip Semiconductor
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shengtak and Nexchip is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Shengtak New Material and Nexchip Semiconductor Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexchip Semiconductor and Shengtak New 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 Shengtak New Material are associated (or correlated) with Nexchip Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nexchip Semiconductor has no effect on the direction of Shengtak New i.e., Shengtak New and Nexchip Semiconductor go up and down completely randomly.
Pair Corralation between Shengtak New and Nexchip Semiconductor
Assuming the 90 days trading horizon Shengtak New Material is expected to generate 0.89 times more return on investment than Nexchip Semiconductor. However, Shengtak New Material is 1.12 times less risky than Nexchip Semiconductor. It trades about -0.05 of its potential returns per unit of risk. Nexchip Semiconductor Corp is currently generating about -0.17 per unit of risk. If you would invest 3,293 in Shengtak New Material on October 17, 2024 and sell it today you would lose (86.00) from holding Shengtak New Material or give up 2.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shengtak New Material vs. Nexchip Semiconductor Corp
Performance |
| Timeline |
| Shengtak New Material |
| Nexchip Semiconductor |
Shengtak New and Nexchip Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shengtak New and Nexchip Semiconductor
The main advantage of trading using opposite Shengtak New and Nexchip Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shengtak New position performs unexpectedly, Nexchip 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 Nexchip Semiconductor will offset losses from the drop in Nexchip Semiconductor's long position.| Shengtak New vs. Wonders Information | Shengtak New vs. Shenzhen SDG Information | Shengtak New vs. Thinkon Semiconductor Jinzhou | Shengtak New vs. Sharetronic Data 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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