Correlation Between Excelliance MOS and Sinopower Semiconductor
Can any of the company-specific risk be diversified away by investing in both Excelliance MOS and Sinopower Semiconductor at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Excelliance MOS and Sinopower Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Excelliance MOS and Sinopower Semiconductor, you can compare the effects of market volatilities on Excelliance MOS and Sinopower 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 Excelliance MOS with a short position of Sinopower Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Excelliance MOS and Sinopower Semiconductor.
Diversification Opportunities for Excelliance MOS and Sinopower Semiconductor
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Excelliance and Sinopower is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Excelliance MOS and Sinopower Semiconductor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinopower Semiconductor and Excelliance MOS 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 Excelliance MOS are associated (or correlated) with Sinopower Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinopower Semiconductor has no effect on the direction of Excelliance MOS i.e., Excelliance MOS and Sinopower Semiconductor go up and down completely randomly.
Pair Corralation between Excelliance MOS and Sinopower Semiconductor
Assuming the 90 days trading horizon Excelliance MOS is expected to generate 0.69 times more return on investment than Sinopower Semiconductor. However, Excelliance MOS is 1.45 times less risky than Sinopower Semiconductor. It trades about -0.21 of its potential returns per unit of risk. Sinopower Semiconductor is currently generating about -0.15 per unit of risk. If you would invest 9,430 in Excelliance MOS on August 30, 2024 and sell it today you would lose (520.00) from holding Excelliance MOS or give up 5.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Excelliance MOS vs. Sinopower Semiconductor
Performance |
| Timeline |
| Excelliance MOS |
| Sinopower Semiconductor |
Excelliance MOS and Sinopower Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Excelliance MOS and Sinopower Semiconductor
The main advantage of trading using opposite Excelliance MOS and Sinopower Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Excelliance MOS position performs unexpectedly, Sinopower 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 Sinopower Semiconductor will offset losses from the drop in Sinopower Semiconductor's long position.| Excelliance MOS vs. Sinopower Semiconductor | Excelliance MOS vs. Niko Semiconductor Co | Excelliance MOS vs. Advanced Power Electronics | Excelliance MOS vs. Anpec Electronics |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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