Correlation Between Xiamen Goldenhome and StarPower Semiconductor
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xiamen Goldenhome Co and StarPower Semiconductor, you can compare the effects of market volatilities on Xiamen Goldenhome 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 Xiamen Goldenhome with a short position of StarPower Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Goldenhome and StarPower Semiconductor.
Diversification Opportunities for Xiamen Goldenhome and StarPower Semiconductor
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xiamen and StarPower is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Goldenhome Co and StarPower Semiconductor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on StarPower Semiconductor and Xiamen Goldenhome 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 Xiamen Goldenhome Co 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 Xiamen Goldenhome i.e., Xiamen Goldenhome and StarPower Semiconductor go up and down completely randomly.
Pair Corralation between Xiamen Goldenhome and StarPower Semiconductor
Assuming the 90 days trading horizon Xiamen Goldenhome Co is expected to generate 1.09 times more return on investment than StarPower Semiconductor. However, Xiamen Goldenhome is 1.09 times more volatile than StarPower Semiconductor. It trades about -0.12 of its potential returns per unit of risk. StarPower Semiconductor is currently generating about -0.23 per unit of risk. If you would invest 2,119 in Xiamen Goldenhome Co on October 28, 2024 and sell it today you would lose (116.00) from holding Xiamen Goldenhome Co or give up 5.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Goldenhome Co vs. StarPower Semiconductor
Performance |
| Timeline |
| Xiamen Goldenhome |
| StarPower Semiconductor |
Xiamen Goldenhome and StarPower Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Goldenhome and StarPower Semiconductor
The main advantage of trading using opposite Xiamen Goldenhome and StarPower Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Goldenhome 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.| Xiamen Goldenhome vs. Southern PublishingMedia Co | Xiamen Goldenhome vs. Thinkon Semiconductor Jinzhou | Xiamen Goldenhome vs. Shanghai Action Education | Xiamen Goldenhome vs. Jiangsu Phoenix Publishing |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |