Correlation Between StarPower Semiconductor and Epoxy Base
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By analyzing existing cross correlation between StarPower Semiconductor and Epoxy Base Electronic, you can compare the effects of market volatilities on StarPower Semiconductor and Epoxy Base 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 Epoxy Base. Check out your portfolio center. Please also check ongoing floating volatility patterns of StarPower Semiconductor and Epoxy Base.
Diversification Opportunities for StarPower Semiconductor and Epoxy Base
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between StarPower and Epoxy is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding StarPower Semiconductor and Epoxy Base Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Epoxy Base Electronic 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 Epoxy Base. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Epoxy Base Electronic has no effect on the direction of StarPower Semiconductor i.e., StarPower Semiconductor and Epoxy Base go up and down completely randomly.
Pair Corralation between StarPower Semiconductor and Epoxy Base
Assuming the 90 days trading horizon StarPower Semiconductor is expected to generate 1.07 times less return on investment than Epoxy Base. In addition to that, StarPower Semiconductor is 1.09 times more volatile than Epoxy Base Electronic. It trades about 0.12 of its total potential returns per unit of risk. Epoxy Base Electronic is currently generating about 0.14 per unit of volatility. If you would invest 479.00 in Epoxy Base Electronic on August 28, 2024 and sell it today you would earn a total of 96.00 from holding Epoxy Base Electronic or generate 20.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
StarPower Semiconductor vs. Epoxy Base Electronic
Performance |
| Timeline |
| StarPower Semiconductor |
| Epoxy Base Electronic |
StarPower Semiconductor and Epoxy Base Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with StarPower Semiconductor and Epoxy Base
The main advantage of trading using opposite StarPower Semiconductor and Epoxy Base positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if StarPower Semiconductor position performs unexpectedly, Epoxy Base 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 Epoxy Base will offset losses from the drop in Epoxy Base's long position.| StarPower Semiconductor vs. Lutian Machinery Co | StarPower Semiconductor vs. China Longyuan Power | StarPower Semiconductor vs. Changshu Tongrun Auto | StarPower Semiconductor vs. PetroChina Co Ltd |
| Epoxy Base vs. Zijin Mining Group | Epoxy Base vs. Wanhua Chemical Group | Epoxy Base vs. Baoshan Iron Steel | Epoxy Base 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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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