Correlation Between Xinjiang Tianrun and Lontium Semiconductor
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By analyzing existing cross correlation between Xinjiang Tianrun Dairy and Lontium Semiconductor Corp, you can compare the effects of market volatilities on Xinjiang Tianrun 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 Xinjiang Tianrun with a short position of Lontium Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Tianrun and Lontium Semiconductor.
Diversification Opportunities for Xinjiang Tianrun and Lontium Semiconductor
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xinjiang and Lontium is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Tianrun Dairy and Lontium Semiconductor Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lontium Semiconductor and Xinjiang Tianrun 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 Xinjiang Tianrun Dairy 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 Xinjiang Tianrun i.e., Xinjiang Tianrun and Lontium Semiconductor go up and down completely randomly.
Pair Corralation between Xinjiang Tianrun and Lontium Semiconductor
Assuming the 90 days trading horizon Xinjiang Tianrun Dairy is expected to under-perform the Lontium Semiconductor. But the stock apears to be less risky and, when comparing its historical volatility, Xinjiang Tianrun Dairy is 2.05 times less risky than Lontium Semiconductor. The stock trades about -0.28 of its potential returns per unit of risk. The Lontium Semiconductor Corp is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 7,230 in Lontium Semiconductor Corp on October 12, 2024 and sell it today you would earn a total of 888.00 from holding Lontium Semiconductor Corp or generate 12.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Tianrun Dairy vs. Lontium Semiconductor Corp
Performance |
| Timeline |
| Xinjiang Tianrun Dairy |
| Lontium Semiconductor |
Xinjiang Tianrun and Lontium Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Tianrun and Lontium Semiconductor
The main advantage of trading using opposite Xinjiang Tianrun and Lontium Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Tianrun 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.| Xinjiang Tianrun vs. Panda Dairy Corp | Xinjiang Tianrun vs. Jinzai Food Group | Xinjiang Tianrun vs. HaiXin Foods Co | Xinjiang Tianrun vs. Postal Savings Bank |
| Lontium Semiconductor vs. Suzhou Weizhixiang Food | Lontium Semiconductor vs. Zhongyin Babi Food | Lontium Semiconductor vs. Xinjiang Tianrun Dairy | Lontium Semiconductor vs. Jiajia Food 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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