Correlation Between Epoxy Base and Semiconductor Manufacturing
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By analyzing existing cross correlation between Epoxy Base Electronic and Semiconductor Manufacturing Electronics, you can compare the effects of market volatilities on Epoxy Base and Semiconductor Manufacturing 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 Epoxy Base with a short position of Semiconductor Manufacturing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Epoxy Base and Semiconductor Manufacturing.
Diversification Opportunities for Epoxy Base and Semiconductor Manufacturing
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Epoxy and Semiconductor is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Epoxy Base Electronic and Semiconductor Manufacturing El in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Semiconductor Manufacturing and Epoxy Base 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 Epoxy Base Electronic are associated (or correlated) with Semiconductor Manufacturing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Semiconductor Manufacturing has no effect on the direction of Epoxy Base i.e., Epoxy Base and Semiconductor Manufacturing go up and down completely randomly.
Pair Corralation between Epoxy Base and Semiconductor Manufacturing
Assuming the 90 days trading horizon Epoxy Base Electronic is expected to under-perform the Semiconductor Manufacturing. In addition to that, Epoxy Base is 1.41 times more volatile than Semiconductor Manufacturing Electronics. It trades about 0.0 of its total potential returns per unit of risk. Semiconductor Manufacturing Electronics is currently generating about 0.02 per unit of volatility. If you would invest 502.00 in Semiconductor Manufacturing Electronics on August 25, 2024 and sell it today you would earn a total of 23.00 from holding Semiconductor Manufacturing Electronics or generate 4.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Epoxy Base Electronic vs. Semiconductor Manufacturing El
Performance |
| Timeline |
| Epoxy Base Electronic |
| Semiconductor Manufacturing |
Epoxy Base and Semiconductor Manufacturing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Epoxy Base and Semiconductor Manufacturing
The main advantage of trading using opposite Epoxy Base and Semiconductor Manufacturing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Epoxy Base position performs unexpectedly, Semiconductor Manufacturing 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 Semiconductor Manufacturing will offset losses from the drop in Semiconductor Manufacturing's long position.| Epoxy Base vs. Zijin Mining Group | Epoxy Base vs. Wanhua Chemical Group | Epoxy Base vs. Baoshan Iron Steel | Epoxy Base vs. Shandong Gold 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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