Correlation Between Luyin Investment and Shannon Semiconductor
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By analyzing existing cross correlation between Luyin Investment Group and Shannon Semiconductor Technology, you can compare the effects of market volatilities on Luyin Investment 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 Luyin Investment with a short position of Shannon Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luyin Investment and Shannon Semiconductor.
Diversification Opportunities for Luyin Investment and Shannon Semiconductor
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Luyin and Shannon is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Luyin Investment Group and Shannon Semiconductor Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shannon Semiconductor and Luyin Investment 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 Luyin Investment Group 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 Luyin Investment i.e., Luyin Investment and Shannon Semiconductor go up and down completely randomly.
Pair Corralation between Luyin Investment and Shannon Semiconductor
Assuming the 90 days trading horizon Luyin Investment Group is expected to generate 1.16 times more return on investment than Shannon Semiconductor. However, Luyin Investment is 1.16 times more volatile than Shannon Semiconductor Technology. It trades about -0.05 of its potential returns per unit of risk. Shannon Semiconductor Technology is currently generating about -0.07 per unit of risk. If you would invest 605.00 in Luyin Investment Group on October 28, 2024 and sell it today you would lose (21.00) from holding Luyin Investment Group or give up 3.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Luyin Investment Group vs. Shannon Semiconductor Technolo
Performance |
| Timeline |
| Luyin Investment |
| Shannon Semiconductor |
Luyin Investment and Shannon Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luyin Investment and Shannon Semiconductor
The main advantage of trading using opposite Luyin Investment and Shannon Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luyin Investment 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.| Luyin Investment vs. Zijin Mining Group | Luyin Investment vs. Wanhua Chemical Group | Luyin Investment vs. Baoshan Iron Steel | Luyin Investment vs. Shandong Gold Mining |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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