Correlation Between Shanghai Broadband and Shannon Semiconductor
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By analyzing existing cross correlation between Shanghai Broadband Technology and Shannon Semiconductor Technology, you can compare the effects of market volatilities on Shanghai Broadband and Shannon 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 Shanghai Broadband with a short position of Shannon Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Broadband and Shannon Semiconductor.
Diversification Opportunities for Shanghai Broadband and Shannon Semiconductor
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shanghai and Shannon is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Broadband Technology and Shannon Semiconductor Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shannon Semiconductor and Shanghai Broadband 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 Shanghai Broadband Technology are associated (or correlated) with Shannon Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shannon Semiconductor has no effect on the direction of Shanghai Broadband i.e., Shanghai Broadband and Shannon Semiconductor go up and down completely randomly.
Pair Corralation between Shanghai Broadband and Shannon Semiconductor
Assuming the 90 days trading horizon Shanghai Broadband Technology is expected to generate 0.8 times more return on investment than Shannon Semiconductor. However, Shanghai Broadband Technology is 1.25 times less risky than Shannon Semiconductor. It trades about -0.03 of its potential returns per unit of risk. Shannon Semiconductor Technology is currently generating about -0.02 per unit of risk. If you would invest 412.00 in Shanghai Broadband Technology on October 12, 2024 and sell it today you would lose (95.00) from holding Shanghai Broadband Technology or give up 23.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Broadband Technology vs. Shannon Semiconductor Technolo
Performance |
| Timeline |
| Shanghai Broadband |
| Shannon Semiconductor |
Shanghai Broadband and Shannon Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Broadband and Shannon Semiconductor
The main advantage of trading using opposite Shanghai Broadband and Shannon Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Broadband position performs unexpectedly, Shannon 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 Shannon Semiconductor will offset losses from the drop in Shannon Semiconductor's long position.| Shanghai Broadband vs. Soyea Technology Co | Shanghai Broadband vs. Dazhong Transportation Group | Shanghai Broadband vs. Eastroc Beverage Group | Shanghai Broadband vs. Smartgiant Technology Co |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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