Correlation Between StarPower Semiconductor and Shanghai Yct
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By analyzing existing cross correlation between StarPower Semiconductor and Shanghai Yct Electronics, you can compare the effects of market volatilities on StarPower Semiconductor and Shanghai Yct 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 Shanghai Yct. Check out your portfolio center. Please also check ongoing floating volatility patterns of StarPower Semiconductor and Shanghai Yct.
Diversification Opportunities for StarPower Semiconductor and Shanghai Yct
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between StarPower and Shanghai is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding StarPower Semiconductor and Shanghai Yct Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Yct Electronics 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 Shanghai Yct. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Yct Electronics has no effect on the direction of StarPower Semiconductor i.e., StarPower Semiconductor and Shanghai Yct go up and down completely randomly.
Pair Corralation between StarPower Semiconductor and Shanghai Yct
Assuming the 90 days trading horizon StarPower Semiconductor is expected to generate 1.37 times less return on investment than Shanghai Yct. In addition to that, StarPower Semiconductor is 1.32 times more volatile than Shanghai Yct Electronics. It trades about 0.28 of its total potential returns per unit of risk. Shanghai Yct Electronics is currently generating about 0.5 per unit of volatility. If you would invest 4,182 in Shanghai Yct Electronics on November 28, 2024 and sell it today you would earn a total of 698.00 from holding Shanghai Yct Electronics or generate 16.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
StarPower Semiconductor vs. Shanghai Yct Electronics
Performance |
| Timeline |
| StarPower Semiconductor |
| Shanghai Yct Electronics |
StarPower Semiconductor and Shanghai Yct Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with StarPower Semiconductor and Shanghai Yct
The main advantage of trading using opposite StarPower Semiconductor and Shanghai Yct positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if StarPower Semiconductor position performs unexpectedly, Shanghai Yct 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 Shanghai Yct will offset losses from the drop in Shanghai Yct's long position.The idea behind StarPower Semiconductor and Shanghai Yct Electronics pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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