Correlation Between Longjian Road and Ingenic Semiconductor
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By analyzing existing cross correlation between Longjian Road Bridge and Ingenic Semiconductor, you can compare the effects of market volatilities on Longjian Road and Ingenic 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 Longjian Road with a short position of Ingenic Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Longjian Road and Ingenic Semiconductor.
Diversification Opportunities for Longjian Road and Ingenic Semiconductor
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Longjian and Ingenic is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Longjian Road Bridge and Ingenic Semiconductor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ingenic Semiconductor and Longjian Road 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 Longjian Road Bridge are associated (or correlated) with Ingenic Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ingenic Semiconductor has no effect on the direction of Longjian Road i.e., Longjian Road and Ingenic Semiconductor go up and down completely randomly.
Pair Corralation between Longjian Road and Ingenic Semiconductor
Assuming the 90 days trading horizon Longjian Road Bridge is expected to generate 0.9 times more return on investment than Ingenic Semiconductor. However, Longjian Road Bridge is 1.11 times less risky than Ingenic Semiconductor. It trades about 0.0 of its potential returns per unit of risk. Ingenic Semiconductor is currently generating about 0.0 per unit of risk. If you would invest 415.00 in Longjian Road Bridge on October 13, 2024 and sell it today you would lose (61.00) from holding Longjian Road Bridge or give up 14.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Longjian Road Bridge vs. Ingenic Semiconductor
Performance |
| Timeline |
| Longjian Road Bridge |
| Ingenic Semiconductor |
Longjian Road and Ingenic Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Longjian Road and Ingenic Semiconductor
The main advantage of trading using opposite Longjian Road and Ingenic Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Longjian Road position performs unexpectedly, Ingenic 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 Ingenic Semiconductor will offset losses from the drop in Ingenic Semiconductor's long position.| Longjian Road vs. Tinavi Medical Technologies | Longjian Road vs. Guangzhou Zhujiang Brewery | Longjian Road vs. Jiangsu Yanghe Brewery | Longjian Road vs. Sunwave Communications Co |
| Ingenic Semiconductor vs. Longjian Road Bridge | Ingenic Semiconductor vs. Jiangsu GDK Biotechnology | Ingenic Semiconductor vs. Wuhan Hvsen Biotechnology | Ingenic Semiconductor vs. Jinhe Biotechnology 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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