Correlation Between Wuhan Yangtze and Lontium Semiconductor
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By analyzing existing cross correlation between Wuhan Yangtze Communication and Lontium Semiconductor Corp, you can compare the effects of market volatilities on Wuhan Yangtze and Lontium 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 Wuhan Yangtze with a short position of Lontium Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Yangtze and Lontium Semiconductor.
Diversification Opportunities for Wuhan Yangtze and Lontium Semiconductor
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Wuhan and Lontium is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Yangtze Communication and Lontium Semiconductor Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lontium Semiconductor and Wuhan Yangtze 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 Wuhan Yangtze Communication are associated (or correlated) with Lontium Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lontium Semiconductor has no effect on the direction of Wuhan Yangtze i.e., Wuhan Yangtze and Lontium Semiconductor go up and down completely randomly.
Pair Corralation between Wuhan Yangtze and Lontium Semiconductor
Assuming the 90 days trading horizon Wuhan Yangtze Communication is expected to under-perform the Lontium Semiconductor. But the stock apears to be less risky and, when comparing its historical volatility, Wuhan Yangtze Communication is 1.44 times less risky than Lontium Semiconductor. The stock trades about -0.09 of its potential returns per unit of risk. The Lontium Semiconductor Corp is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 6,280 in Lontium Semiconductor Corp on October 28, 2024 and sell it today you would earn a total of 3,298 from holding Lontium Semiconductor Corp or generate 52.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Yangtze Communication vs. Lontium Semiconductor Corp
Performance |
| Timeline |
| Wuhan Yangtze Commun |
| Lontium Semiconductor |
Wuhan Yangtze and Lontium Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Yangtze and Lontium Semiconductor
The main advantage of trading using opposite Wuhan Yangtze and Lontium Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Yangtze position performs unexpectedly, Lontium 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 Lontium Semiconductor will offset losses from the drop in Lontium Semiconductor's long position.| Wuhan Yangtze vs. Bus Online Co | Wuhan Yangtze vs. Holitech Technology Co | Wuhan Yangtze vs. Gome Telecom Equipment | Wuhan Yangtze vs. Cultural Investment Holdings |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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