Correlation Between China International and StarPower Semiconductor
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By analyzing existing cross correlation between China International Capital and StarPower Semiconductor, you can compare the effects of market volatilities on China International and StarPower 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 China International with a short position of StarPower Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of China International and StarPower Semiconductor.
Diversification Opportunities for China International and StarPower Semiconductor
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and StarPower is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding China International Capital and StarPower Semiconductor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on StarPower Semiconductor and China International 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 China International Capital are associated (or correlated) with StarPower Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of StarPower Semiconductor has no effect on the direction of China International i.e., China International and StarPower Semiconductor go up and down completely randomly.
Pair Corralation between China International and StarPower Semiconductor
Assuming the 90 days trading horizon China International is expected to generate 4.58 times less return on investment than StarPower Semiconductor. But when comparing it to its historical volatility, China International Capital is 1.36 times less risky than StarPower Semiconductor. It trades about 0.02 of its potential returns per unit of risk. StarPower Semiconductor is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 9,643 in StarPower Semiconductor on September 1, 2024 and sell it today you would earn a total of 389.00 from holding StarPower Semiconductor or generate 4.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China International Capital vs. StarPower Semiconductor
Performance |
| Timeline |
| China International |
| StarPower Semiconductor |
China International and StarPower Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China International and StarPower Semiconductor
The main advantage of trading using opposite China International and StarPower Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China International position performs unexpectedly, StarPower 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 StarPower Semiconductor will offset losses from the drop in StarPower Semiconductor's long position.| China International vs. Offshore Oil Engineering | China International vs. Guocheng Mining Co | China International vs. Zhengzhou Coal Mining | China International vs. Xiandai Investment 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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