Correlation Between Xiamen Goldenhome and Southchip Semiconductor
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By analyzing existing cross correlation between Xiamen Goldenhome Co and Southchip Semiconductor Technology, you can compare the effects of market volatilities on Xiamen Goldenhome and Southchip 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 Southchip Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Goldenhome and Southchip Semiconductor.
Diversification Opportunities for Xiamen Goldenhome and Southchip Semiconductor
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xiamen and Southchip is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Goldenhome Co and Southchip Semiconductor Techno in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southchip 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 Southchip Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southchip Semiconductor has no effect on the direction of Xiamen Goldenhome i.e., Xiamen Goldenhome and Southchip Semiconductor go up and down completely randomly.
Pair Corralation between Xiamen Goldenhome and Southchip Semiconductor
Assuming the 90 days trading horizon Xiamen Goldenhome Co is expected to generate 1.22 times more return on investment than Southchip Semiconductor. However, Xiamen Goldenhome is 1.22 times more volatile than Southchip Semiconductor Technology. It trades about -0.15 of its potential returns per unit of risk. Southchip Semiconductor Technology is currently generating about -0.31 per unit of risk. If you would invest 2,100 in Xiamen Goldenhome Co on October 9, 2024 and sell it today you would lose (214.00) from holding Xiamen Goldenhome Co or give up 10.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Goldenhome Co vs. Southchip Semiconductor Techno
Performance |
| Timeline |
| Xiamen Goldenhome |
| Southchip Semiconductor |
Xiamen Goldenhome and Southchip Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Goldenhome and Southchip Semiconductor
The main advantage of trading using opposite Xiamen Goldenhome and Southchip Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Goldenhome position performs unexpectedly, Southchip 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 Southchip Semiconductor will offset losses from the drop in Southchip Semiconductor's long position.| Xiamen Goldenhome vs. Kweichow Moutai Co | Xiamen Goldenhome vs. NAURA Technology Group | Xiamen Goldenhome vs. Zhejiang Orient Gene | Xiamen Goldenhome vs. APT Medical |
| Southchip Semiconductor vs. Jinhui Mining Co | Southchip Semiconductor vs. Guocheng Mining Co | Southchip Semiconductor vs. Gan Yuan Foods | Southchip Semiconductor vs. Guilin Seamild Foods |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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