Correlation Between Fujian Wanchen and Lontium Semiconductor
Specify exactly 2 symbols:
By analyzing existing cross correlation between Fujian Wanchen Biotechnology and Lontium Semiconductor Corp, you can compare the effects of market volatilities on Fujian Wanchen and Lontium 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 Fujian Wanchen with a short position of Lontium Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Wanchen and Lontium Semiconductor.
Diversification Opportunities for Fujian Wanchen and Lontium Semiconductor
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fujian and Lontium is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Wanchen Biotechnology and Lontium Semiconductor Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lontium Semiconductor and Fujian Wanchen 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 Fujian Wanchen Biotechnology are associated (or correlated) with Lontium Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lontium Semiconductor has no effect on the direction of Fujian Wanchen i.e., Fujian Wanchen and Lontium Semiconductor go up and down completely randomly.
Pair Corralation between Fujian Wanchen and Lontium Semiconductor
Assuming the 90 days trading horizon Fujian Wanchen Biotechnology is expected to generate 0.92 times more return on investment than Lontium Semiconductor. However, Fujian Wanchen Biotechnology is 1.09 times less risky than Lontium Semiconductor. It trades about 0.19 of its potential returns per unit of risk. Lontium Semiconductor Corp is currently generating about 0.15 per unit of risk. If you would invest 5,989 in Fujian Wanchen Biotechnology on October 24, 2024 and sell it today you would earn a total of 3,751 from holding Fujian Wanchen Biotechnology or generate 62.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Wanchen Biotechnology vs. Lontium Semiconductor Corp
Performance |
| Timeline |
| Fujian Wanchen Biote |
| Lontium Semiconductor |
Fujian Wanchen and Lontium Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Wanchen and Lontium Semiconductor
The main advantage of trading using opposite Fujian Wanchen and Lontium Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Wanchen position performs unexpectedly, Lontium 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 Lontium Semiconductor will offset losses from the drop in Lontium Semiconductor's long position.| Fujian Wanchen vs. Quectel Wireless Solutions | Fujian Wanchen vs. State Grid InformationCommunication | Fujian Wanchen vs. Lingyuan Iron Steel | Fujian Wanchen vs. Songz Automobile Air |
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.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |