Correlation Between StarPower Semiconductor and Ye Chiu
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By analyzing existing cross correlation between StarPower Semiconductor and Ye Chiu Metal, you can compare the effects of market volatilities on StarPower Semiconductor and Ye Chiu 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 Ye Chiu. Check out your portfolio center. Please also check ongoing floating volatility patterns of StarPower Semiconductor and Ye Chiu.
Diversification Opportunities for StarPower Semiconductor and Ye Chiu
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between StarPower and 601388 is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding StarPower Semiconductor and Ye Chiu Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ye Chiu Metal 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 Ye Chiu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ye Chiu Metal has no effect on the direction of StarPower Semiconductor i.e., StarPower Semiconductor and Ye Chiu go up and down completely randomly.
Pair Corralation between StarPower Semiconductor and Ye Chiu
Assuming the 90 days trading horizon StarPower Semiconductor is expected to under-perform the Ye Chiu. In addition to that, StarPower Semiconductor is 1.25 times more volatile than Ye Chiu Metal. It trades about -0.06 of its total potential returns per unit of risk. Ye Chiu Metal is currently generating about 0.0 per unit of volatility. If you would invest 329.00 in Ye Chiu Metal on September 14, 2024 and sell it today you would lose (30.00) from holding Ye Chiu Metal or give up 9.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
StarPower Semiconductor vs. Ye Chiu Metal
Performance |
| Timeline |
| StarPower Semiconductor |
| Ye Chiu Metal |
StarPower Semiconductor and Ye Chiu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with StarPower Semiconductor and Ye Chiu
The main advantage of trading using opposite StarPower Semiconductor and Ye Chiu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if StarPower Semiconductor position performs unexpectedly, Ye Chiu 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 Ye Chiu will offset losses from the drop in Ye Chiu's long position.The idea behind StarPower Semiconductor and Ye Chiu Metal 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.
| Ye Chiu vs. Zijin Mining Group | Ye Chiu vs. Wanhua Chemical Group | Ye Chiu vs. Baoshan Iron Steel | Ye Chiu vs. Shandong Gold Mining |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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