Correlation Between Jiangsu Phoenix and Lontium Semiconductor
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jiangsu Phoenix Publishing and Lontium Semiconductor Corp, you can compare the effects of market volatilities on Jiangsu Phoenix 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 Jiangsu Phoenix with a short position of Lontium Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Phoenix and Lontium Semiconductor.
Diversification Opportunities for Jiangsu Phoenix and Lontium Semiconductor
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and Lontium is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Phoenix 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 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 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 Jiangsu Phoenix i.e., Jiangsu Phoenix and Lontium Semiconductor go up and down completely randomly.
Pair Corralation between Jiangsu Phoenix and Lontium Semiconductor
Assuming the 90 days trading horizon Jiangsu Phoenix is expected to generate 1.57 times less return on investment than Lontium Semiconductor. But when comparing it to its historical volatility, Jiangsu Phoenix Publishing is 1.56 times less risky than Lontium Semiconductor. It trades about 0.04 of its potential returns per unit of risk. Lontium Semiconductor Corp is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 5,782 in Lontium Semiconductor Corp on October 16, 2024 and sell it today you would earn a total of 2,486 from holding Lontium Semiconductor Corp or generate 43.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.65% |
| Values | Daily Returns |
Jiangsu Phoenix Publishing vs. Lontium Semiconductor Corp
Performance |
| Timeline |
| Jiangsu Phoenix Publ |
| Lontium Semiconductor |
Jiangsu Phoenix and Lontium Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Phoenix and Lontium Semiconductor
The main advantage of trading using opposite Jiangsu Phoenix and Lontium Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Phoenix 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.| Jiangsu Phoenix vs. AVCON Information Tech | Jiangsu Phoenix vs. Ningbo MedicalSystem Biotechnology | Jiangsu Phoenix vs. Zhongshan Public Utilities | Jiangsu Phoenix vs. Fujian Wanchen Biotechnology |
| Lontium Semiconductor vs. Lootom Telcovideo Network | Lontium Semiconductor vs. Tianshan Aluminum Group | Lontium Semiconductor vs. Tongyu Communication | Lontium Semiconductor vs. Sunwave Communications 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |