Correlation Between Xinhua Winshare and Lontium Semiconductor
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By analyzing existing cross correlation between Xinhua Winshare Publishing and Lontium Semiconductor Corp, you can compare the effects of market volatilities on Xinhua Winshare 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 Xinhua Winshare with a short position of Lontium Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinhua Winshare and Lontium Semiconductor.
Diversification Opportunities for Xinhua Winshare and Lontium Semiconductor
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xinhua and Lontium is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Xinhua Winshare Publishing and Lontium Semiconductor Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lontium Semiconductor and Xinhua Winshare 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 Xinhua Winshare Publishing 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 Xinhua Winshare i.e., Xinhua Winshare and Lontium Semiconductor go up and down completely randomly.
Pair Corralation between Xinhua Winshare and Lontium Semiconductor
Assuming the 90 days trading horizon Xinhua Winshare is expected to generate 10.74 times less return on investment than Lontium Semiconductor. But when comparing it to its historical volatility, Xinhua Winshare Publishing is 3.36 times less risky than Lontium Semiconductor. It trades about 0.06 of its potential returns per unit of risk. Lontium Semiconductor Corp is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 6,240 in Lontium Semiconductor Corp on October 30, 2024 and sell it today you would earn a total of 2,744 from holding Lontium Semiconductor Corp or generate 43.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinhua Winshare Publishing vs. Lontium Semiconductor Corp
Performance |
| Timeline |
| Xinhua Winshare Publ |
| Lontium Semiconductor |
Xinhua Winshare and Lontium Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinhua Winshare and Lontium Semiconductor
The main advantage of trading using opposite Xinhua Winshare and Lontium Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinhua Winshare 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.| Xinhua Winshare vs. Heren Health Co | Xinhua Winshare vs. Impulse Qingdao Health | Xinhua Winshare vs. PKU HealthCare Corp | Xinhua Winshare vs. Sanquan Food 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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