Correlation Between StarPower Semiconductor and Guangdong Wens
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By analyzing existing cross correlation between StarPower Semiconductor and Guangdong Wens Foodstuff, you can compare the effects of market volatilities on StarPower Semiconductor and Guangdong Wens 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 Guangdong Wens. Check out your portfolio center. Please also check ongoing floating volatility patterns of StarPower Semiconductor and Guangdong Wens.
Diversification Opportunities for StarPower Semiconductor and Guangdong Wens
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between StarPower and Guangdong is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding StarPower Semiconductor and Guangdong Wens Foodstuff in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Wens Foodstuff 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 Guangdong Wens. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Wens Foodstuff has no effect on the direction of StarPower Semiconductor i.e., StarPower Semiconductor and Guangdong Wens go up and down completely randomly.
Pair Corralation between StarPower Semiconductor and Guangdong Wens
Assuming the 90 days trading horizon StarPower Semiconductor is expected to under-perform the Guangdong Wens. In addition to that, StarPower Semiconductor is 1.81 times more volatile than Guangdong Wens Foodstuff. It trades about -0.24 of its total potential returns per unit of risk. Guangdong Wens Foodstuff is currently generating about -0.31 per unit of volatility. If you would invest 1,892 in Guangdong Wens Foodstuff on September 12, 2024 and sell it today you would lose (169.00) from holding Guangdong Wens Foodstuff or give up 8.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
StarPower Semiconductor vs. Guangdong Wens Foodstuff
Performance |
| Timeline |
| StarPower Semiconductor |
| Guangdong Wens Foodstuff |
StarPower Semiconductor and Guangdong Wens Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with StarPower Semiconductor and Guangdong Wens
The main advantage of trading using opposite StarPower Semiconductor and Guangdong Wens positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if StarPower Semiconductor position performs unexpectedly, Guangdong Wens 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 Guangdong Wens will offset losses from the drop in Guangdong Wens' long position.| StarPower Semiconductor vs. Gansu Jiu Steel | StarPower Semiconductor vs. Shandong Mining Machinery | StarPower Semiconductor vs. Aba Chemicals Corp | StarPower Semiconductor vs. BlueFocus Communication Group |
| Guangdong Wens vs. China Petroleum Chemical | Guangdong Wens vs. PetroChina Co Ltd | Guangdong Wens vs. China State Construction | Guangdong Wens vs. China Railway Group |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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