Correlation Between Luyin Investment and Nexchip Semiconductor
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By analyzing existing cross correlation between Luyin Investment Group and Nexchip Semiconductor Corp, you can compare the effects of market volatilities on Luyin Investment and Nexchip 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 Nexchip Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luyin Investment and Nexchip Semiconductor.
Diversification Opportunities for Luyin Investment and Nexchip Semiconductor
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Luyin and Nexchip is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Luyin Investment Group and Nexchip Semiconductor Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexchip 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 Nexchip Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nexchip Semiconductor has no effect on the direction of Luyin Investment i.e., Luyin Investment and Nexchip Semiconductor go up and down completely randomly.
Pair Corralation between Luyin Investment and Nexchip Semiconductor
Assuming the 90 days trading horizon Luyin Investment Group is expected to generate 0.76 times more return on investment than Nexchip Semiconductor. However, Luyin Investment Group is 1.32 times less risky than Nexchip Semiconductor. It trades about -0.27 of its potential returns per unit of risk. Nexchip Semiconductor Corp is currently generating about -0.46 per unit of risk. If you would invest 640.00 in Luyin Investment Group on October 9, 2024 and sell it today you would lose (63.00) from holding Luyin Investment Group or give up 9.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Luyin Investment Group vs. Nexchip Semiconductor Corp
Performance |
| Timeline |
| Luyin Investment |
| Nexchip Semiconductor |
Luyin Investment and Nexchip Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luyin Investment and Nexchip Semiconductor
The main advantage of trading using opposite Luyin Investment and Nexchip Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luyin Investment position performs unexpectedly, Nexchip 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 Nexchip Semiconductor will offset losses from the drop in Nexchip 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 |
| Nexchip Semiconductor vs. Marssenger Kitchenware Co | Nexchip Semiconductor vs. Keda Clean Energy | Nexchip Semiconductor vs. Jiangsu Phoenix Publishing | Nexchip Semiconductor vs. Northern United Publishing |
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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