Correlation Between Ping An and Lontium Semiconductor
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By analyzing existing cross correlation between Ping An Insurance and Lontium Semiconductor Corp, you can compare the effects of market volatilities on Ping An and Lontium 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 Ping An with a short position of Lontium Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ping An and Lontium Semiconductor.
Diversification Opportunities for Ping An and Lontium Semiconductor
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ping and Lontium is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Ping An Insurance and Lontium Semiconductor Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lontium Semiconductor and Ping An 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 Ping An Insurance are associated (or correlated) with Lontium Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lontium Semiconductor has no effect on the direction of Ping An i.e., Ping An and Lontium Semiconductor go up and down completely randomly.
Pair Corralation between Ping An and Lontium Semiconductor
Assuming the 90 days trading horizon Ping An is expected to generate 1.99 times less return on investment than Lontium Semiconductor. But when comparing it to its historical volatility, Ping An Insurance is 2.19 times less risky than Lontium Semiconductor. It trades about 0.08 of its potential returns per unit of risk. Lontium Semiconductor Corp is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 5,335 in Lontium Semiconductor Corp on October 12, 2024 and sell it today you would earn a total of 2,783 from holding Lontium Semiconductor Corp or generate 52.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ping An Insurance vs. Lontium Semiconductor Corp
Performance |
| Timeline |
| Ping An Insurance |
| Lontium Semiconductor |
Ping An and Lontium Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ping An and Lontium Semiconductor
The main advantage of trading using opposite Ping An and Lontium Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ping An position performs unexpectedly, Lontium 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 Lontium Semiconductor will offset losses from the drop in Lontium Semiconductor's long position.| Ping An vs. Unisplendour Corp | Ping An vs. Konfoong Materials International | Ping An vs. Zhejiang JIULI Hi tech | Ping An vs. China Building Material |
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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