Correlation Between Jiangsu Phoenix and Nexchip Semiconductor
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By analyzing existing cross correlation between Jiangsu Phoenix Publishing and Nexchip Semiconductor Corp, you can compare the effects of market volatilities on Jiangsu Phoenix 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 Jiangsu Phoenix with a short position of Nexchip Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Phoenix and Nexchip Semiconductor.
Diversification Opportunities for Jiangsu Phoenix and Nexchip Semiconductor
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jiangsu and Nexchip is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Phoenix Publishing and Nexchip Semiconductor Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexchip Semiconductor and Jiangsu Phoenix 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 Jiangsu Phoenix Publishing 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 Jiangsu Phoenix i.e., Jiangsu Phoenix and Nexchip Semiconductor go up and down completely randomly.
Pair Corralation between Jiangsu Phoenix and Nexchip Semiconductor
Assuming the 90 days trading horizon Jiangsu Phoenix Publishing is expected to under-perform the Nexchip Semiconductor. But the stock apears to be less risky and, when comparing its historical volatility, Jiangsu Phoenix Publishing is 1.11 times less risky than Nexchip Semiconductor. The stock trades about -0.19 of its potential returns per unit of risk. The Nexchip Semiconductor Corp is currently generating about -0.14 of returns per unit of risk over similar time horizon. If you would invest 2,519 in Nexchip Semiconductor Corp on October 25, 2024 and sell it today you would lose (155.00) from holding Nexchip Semiconductor Corp or give up 6.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Phoenix Publishing vs. Nexchip Semiconductor Corp
Performance |
| Timeline |
| Jiangsu Phoenix Publ |
| Nexchip Semiconductor |
Jiangsu Phoenix and Nexchip Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Phoenix and Nexchip Semiconductor
The main advantage of trading using opposite Jiangsu Phoenix and Nexchip Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Phoenix 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.| Jiangsu Phoenix vs. Industrial and Commercial | Jiangsu Phoenix vs. Agricultural Bank of | Jiangsu Phoenix vs. China Construction Bank | Jiangsu Phoenix vs. Bank of China |
| Nexchip Semiconductor vs. Telling Telecommunication Holding | Nexchip Semiconductor vs. Hainan Mining Co | Nexchip Semiconductor vs. Tianjin Silvery Dragon | Nexchip Semiconductor vs. Jiangxi Naipu Mining |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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