Correlation Between Hua Xia and StarPower Semiconductor
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By analyzing existing cross correlation between Hua Xia Bank and StarPower Semiconductor, you can compare the effects of market volatilities on Hua Xia and StarPower 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 Hua Xia with a short position of StarPower Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hua Xia and StarPower Semiconductor.
Diversification Opportunities for Hua Xia and StarPower Semiconductor
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hua and StarPower is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Hua Xia Bank and StarPower Semiconductor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on StarPower Semiconductor and Hua Xia 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 Hua Xia Bank are associated (or correlated) with StarPower Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of StarPower Semiconductor has no effect on the direction of Hua Xia i.e., Hua Xia and StarPower Semiconductor go up and down completely randomly.
Pair Corralation between Hua Xia and StarPower Semiconductor
Assuming the 90 days trading horizon Hua Xia Bank is expected to generate 0.44 times more return on investment than StarPower Semiconductor. However, Hua Xia Bank is 2.28 times less risky than StarPower Semiconductor. It trades about 0.07 of its potential returns per unit of risk. StarPower Semiconductor is currently generating about -0.07 per unit of risk. If you would invest 480.00 in Hua Xia Bank on October 26, 2024 and sell it today you would earn a total of 263.00 from holding Hua Xia Bank or generate 54.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hua Xia Bank vs. StarPower Semiconductor
Performance |
| Timeline |
| Hua Xia Bank |
| StarPower Semiconductor |
Hua Xia and StarPower Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hua Xia and StarPower Semiconductor
The main advantage of trading using opposite Hua Xia and StarPower Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hua Xia position performs unexpectedly, StarPower 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 StarPower Semiconductor will offset losses from the drop in StarPower Semiconductor's long position.| Hua Xia vs. China Mobile Limited | Hua Xia vs. Kingclean Electric Co | Hua Xia vs. Shaanxi Meineng Clean | Hua Xia vs. Fibocom Wireless |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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