Correlation Between Shenzhen Bioeasy and Semiconductor Manufacturing
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By analyzing existing cross correlation between Shenzhen Bioeasy Biotechnology and Semiconductor Manufacturing Electronics, you can compare the effects of market volatilities on Shenzhen Bioeasy and Semiconductor Manufacturing 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 Shenzhen Bioeasy with a short position of Semiconductor Manufacturing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Bioeasy and Semiconductor Manufacturing.
Diversification Opportunities for Shenzhen Bioeasy and Semiconductor Manufacturing
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenzhen and Semiconductor is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Bioeasy Biotechnology and Semiconductor Manufacturing El in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Semiconductor Manufacturing and Shenzhen Bioeasy 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 Shenzhen Bioeasy Biotechnology are associated (or correlated) with Semiconductor Manufacturing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Semiconductor Manufacturing has no effect on the direction of Shenzhen Bioeasy i.e., Shenzhen Bioeasy and Semiconductor Manufacturing go up and down completely randomly.
Pair Corralation between Shenzhen Bioeasy and Semiconductor Manufacturing
Assuming the 90 days trading horizon Shenzhen Bioeasy Biotechnology is expected to generate 1.55 times more return on investment than Semiconductor Manufacturing. However, Shenzhen Bioeasy is 1.55 times more volatile than Semiconductor Manufacturing Electronics. It trades about 0.08 of its potential returns per unit of risk. Semiconductor Manufacturing Electronics is currently generating about 0.11 per unit of risk. If you would invest 707.00 in Shenzhen Bioeasy Biotechnology on August 31, 2024 and sell it today you would earn a total of 281.00 from holding Shenzhen Bioeasy Biotechnology or generate 39.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Bioeasy Biotechnology vs. Semiconductor Manufacturing El
Performance |
| Timeline |
| Shenzhen Bioeasy Bio |
| Semiconductor Manufacturing |
Shenzhen Bioeasy and Semiconductor Manufacturing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Bioeasy and Semiconductor Manufacturing
The main advantage of trading using opposite Shenzhen Bioeasy and Semiconductor Manufacturing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Bioeasy position performs unexpectedly, Semiconductor Manufacturing 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 Semiconductor Manufacturing will offset losses from the drop in Semiconductor Manufacturing's long position.| Shenzhen Bioeasy vs. PetroChina Co Ltd | Shenzhen Bioeasy vs. China Mobile Limited | Shenzhen Bioeasy vs. Ping An Insurance | Shenzhen Bioeasy vs. China Petroleum Chemical |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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