Correlation Between Harbin Hatou and Semiconductor Manufacturing
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By analyzing existing cross correlation between Harbin Hatou Investment and Semiconductor Manufacturing Intl, you can compare the effects of market volatilities on Harbin Hatou and Semiconductor Manufacturing 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 Harbin Hatou with a short position of Semiconductor Manufacturing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbin Hatou and Semiconductor Manufacturing.
Diversification Opportunities for Harbin Hatou and Semiconductor Manufacturing
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Harbin and Semiconductor is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Harbin Hatou Investment and Semiconductor Manufacturing In in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Semiconductor Manufacturing and Harbin Hatou 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 Harbin Hatou Investment are associated (or correlated) with Semiconductor Manufacturing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Semiconductor Manufacturing has no effect on the direction of Harbin Hatou i.e., Harbin Hatou and Semiconductor Manufacturing go up and down completely randomly.
Pair Corralation between Harbin Hatou and Semiconductor Manufacturing
Assuming the 90 days trading horizon Harbin Hatou Investment is expected to under-perform the Semiconductor Manufacturing. But the stock apears to be less risky and, when comparing its historical volatility, Harbin Hatou Investment is 1.14 times less risky than Semiconductor Manufacturing. The stock trades about -0.31 of its potential returns per unit of risk. The Semiconductor Manufacturing Intl is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 8,150 in Semiconductor Manufacturing Intl on October 15, 2024 and sell it today you would earn a total of 1,168 from holding Semiconductor Manufacturing Intl or generate 14.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harbin Hatou Investment vs. Semiconductor Manufacturing In
Performance |
| Timeline |
| Harbin Hatou Investment |
| Semiconductor Manufacturing |
Harbin Hatou and Semiconductor Manufacturing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbin Hatou and Semiconductor Manufacturing
The main advantage of trading using opposite Harbin Hatou and Semiconductor Manufacturing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbin Hatou position performs unexpectedly, Semiconductor Manufacturing 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 Semiconductor Manufacturing will offset losses from the drop in Semiconductor Manufacturing's long position.| Harbin Hatou vs. Dongfeng Automobile Co | Harbin Hatou vs. Guotai Epoint Software | Harbin Hatou vs. Anhui Jianghuai Automobile | Harbin Hatou vs. Beijing Baolande Software |
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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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