Correlation Between China Asset and Nexchip Semiconductor
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By analyzing existing cross correlation between China Asset Management and Nexchip Semiconductor Corp, you can compare the effects of market volatilities on China Asset 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 China Asset with a short position of Nexchip Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Asset and Nexchip Semiconductor.
Diversification Opportunities for China Asset and Nexchip Semiconductor
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between China and Nexchip is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding China Asset Management and Nexchip Semiconductor Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexchip Semiconductor and China Asset 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 China Asset Management 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 China Asset i.e., China Asset and Nexchip Semiconductor go up and down completely randomly.
Pair Corralation between China Asset and Nexchip Semiconductor
Assuming the 90 days trading horizon China Asset Management is expected to generate 0.55 times more return on investment than Nexchip Semiconductor. However, China Asset Management is 1.82 times less risky than Nexchip Semiconductor. It trades about 0.51 of its potential returns per unit of risk. Nexchip Semiconductor Corp is currently generating about -0.46 per unit of risk. If you would invest 324.00 in China Asset Management on October 9, 2024 and sell it today you would earn a total of 46.00 from holding China Asset Management or generate 14.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Asset Management vs. Nexchip Semiconductor Corp
Performance |
| Timeline |
| China Asset Management |
| Nexchip Semiconductor |
China Asset and Nexchip Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Asset and Nexchip Semiconductor
The main advantage of trading using opposite China Asset and Nexchip Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Asset 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.| China Asset vs. Nuode Investment Co | China Asset vs. Chengdu Xingrong Investment | China Asset vs. Xiandai Investment Co | China Asset vs. Guangzhou KingTeller Technology |
| Nexchip Semiconductor vs. Marssenger Kitchenware Co | Nexchip Semiconductor vs. Keda Clean Energy | Nexchip Semiconductor vs. Jiangsu Phoenix Publishing | Nexchip Semiconductor vs. Northern United Publishing |
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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