Correlation Between Sublime China and Shannon Semiconductor
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By analyzing existing cross correlation between Sublime China Information and Shannon Semiconductor Technology, you can compare the effects of market volatilities on Sublime China 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 Sublime China with a short position of Shannon Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sublime China and Shannon Semiconductor.
Diversification Opportunities for Sublime China and Shannon Semiconductor
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sublime and Shannon is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Sublime China Information and Shannon Semiconductor Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shannon Semiconductor and Sublime China 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 Sublime China Information 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 Sublime China i.e., Sublime China and Shannon Semiconductor go up and down completely randomly.
Pair Corralation between Sublime China and Shannon Semiconductor
Assuming the 90 days trading horizon Sublime China Information is expected to generate 1.93 times more return on investment than Shannon Semiconductor. However, Sublime China is 1.93 times more volatile than Shannon Semiconductor Technology. It trades about 0.39 of its potential returns per unit of risk. Shannon Semiconductor Technology is currently generating about 0.28 per unit of risk. If you would invest 5,860 in Sublime China Information on November 8, 2024 and sell it today you would earn a total of 2,841 from holding Sublime China Information or generate 48.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sublime China Information vs. Shannon Semiconductor Technolo
Performance |
| Timeline |
| Sublime China Information |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| Shannon Semiconductor |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sublime China and Shannon Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sublime China and Shannon Semiconductor
The main advantage of trading using opposite Sublime China and Shannon Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sublime China 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.The idea behind Sublime China Information and Shannon Semiconductor Technology 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.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 Transaction History module to view history of all your transactions and understand their impact on performance.
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