Correlation Between Hua Xia and Will Semiconductor
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By analyzing existing cross correlation between Hua Xia Bank and Will Semiconductor Co, you can compare the effects of market volatilities on Hua Xia and Will 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 Will Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hua Xia and Will Semiconductor.
Diversification Opportunities for Hua Xia and Will Semiconductor
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hua and Will is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Hua Xia Bank and Will Semiconductor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Will 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 Will Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Will Semiconductor has no effect on the direction of Hua Xia i.e., Hua Xia and Will Semiconductor go up and down completely randomly.
Pair Corralation between Hua Xia and Will Semiconductor
Assuming the 90 days trading horizon Hua Xia Bank is expected to generate 0.93 times more return on investment than Will Semiconductor. However, Hua Xia Bank is 1.08 times less risky than Will Semiconductor. It trades about 0.22 of its potential returns per unit of risk. Will Semiconductor Co is currently generating about -0.34 per unit of risk. If you would invest 712.00 in Hua Xia Bank on September 12, 2024 and sell it today you would earn a total of 60.00 from holding Hua Xia Bank or generate 8.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hua Xia Bank vs. Will Semiconductor Co
Performance |
| Timeline |
| Hua Xia Bank |
| Will Semiconductor |
Hua Xia and Will Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hua Xia and Will Semiconductor
The main advantage of trading using opposite Hua Xia and Will Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hua Xia position performs unexpectedly, Will 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 Will Semiconductor will offset losses from the drop in Will Semiconductor's long position.| Hua Xia vs. China Petroleum Chemical | Hua Xia vs. PetroChina Co Ltd | Hua Xia vs. China Mobile Limited | Hua Xia vs. Industrial and Commercial |
| Will Semiconductor vs. Gansu Jiu Steel | Will Semiconductor vs. Shandong Mining Machinery | Will Semiconductor vs. Aba Chemicals Corp | Will Semiconductor vs. BlueFocus Communication Group |
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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