Correlation Between StarPower Semiconductor and Henan Shuanghui
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By analyzing existing cross correlation between StarPower Semiconductor and Henan Shuanghui Investment, you can compare the effects of market volatilities on StarPower Semiconductor and Henan Shuanghui 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 StarPower Semiconductor with a short position of Henan Shuanghui. Check out your portfolio center. Please also check ongoing floating volatility patterns of StarPower Semiconductor and Henan Shuanghui.
Diversification Opportunities for StarPower Semiconductor and Henan Shuanghui
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between StarPower and Henan is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding StarPower Semiconductor and Henan Shuanghui Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henan Shuanghui Inve and StarPower Semiconductor 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 StarPower Semiconductor are associated (or correlated) with Henan Shuanghui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henan Shuanghui Inve has no effect on the direction of StarPower Semiconductor i.e., StarPower Semiconductor and Henan Shuanghui go up and down completely randomly.
Pair Corralation between StarPower Semiconductor and Henan Shuanghui
Assuming the 90 days trading horizon StarPower Semiconductor is expected to generate 2.03 times more return on investment than Henan Shuanghui. However, StarPower Semiconductor is 2.03 times more volatile than Henan Shuanghui Investment. It trades about 0.06 of its potential returns per unit of risk. Henan Shuanghui Investment is currently generating about 0.09 per unit of risk. If you would invest 7,308 in StarPower Semiconductor on November 2, 2024 and sell it today you would earn a total of 1,092 from holding StarPower Semiconductor or generate 14.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
StarPower Semiconductor vs. Henan Shuanghui Investment
Performance |
| Timeline |
| StarPower Semiconductor |
| Henan Shuanghui Inve |
StarPower Semiconductor and Henan Shuanghui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with StarPower Semiconductor and Henan Shuanghui
The main advantage of trading using opposite StarPower Semiconductor and Henan Shuanghui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if StarPower Semiconductor position performs unexpectedly, Henan Shuanghui 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 Henan Shuanghui will offset losses from the drop in Henan Shuanghui's long position.| StarPower Semiconductor vs. Xilong Chemical Co | StarPower Semiconductor vs. Lier Chemical Co | StarPower Semiconductor vs. Heilongjiang Transport Development | StarPower Semiconductor vs. Aluminum Corp of |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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