Correlation Between StarPower Semiconductor and Sinocat Environmental
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By analyzing existing cross correlation between StarPower Semiconductor and Sinocat Environmental Technology, you can compare the effects of market volatilities on StarPower Semiconductor and Sinocat Environmental 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 Sinocat Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of StarPower Semiconductor and Sinocat Environmental.
Diversification Opportunities for StarPower Semiconductor and Sinocat Environmental
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between StarPower and Sinocat is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding StarPower Semiconductor and Sinocat Environmental Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinocat Environmental 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 Sinocat Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinocat Environmental has no effect on the direction of StarPower Semiconductor i.e., StarPower Semiconductor and Sinocat Environmental go up and down completely randomly.
Pair Corralation between StarPower Semiconductor and Sinocat Environmental
Assuming the 90 days trading horizon StarPower Semiconductor is expected to generate 0.48 times more return on investment than Sinocat Environmental. However, StarPower Semiconductor is 2.07 times less risky than Sinocat Environmental. It trades about -0.29 of its potential returns per unit of risk. Sinocat Environmental Technology is currently generating about -0.33 per unit of risk. If you would invest 9,613 in StarPower Semiconductor on October 17, 2024 and sell it today you would lose (1,223) from holding StarPower Semiconductor or give up 12.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
StarPower Semiconductor vs. Sinocat Environmental Technolo
Performance |
| Timeline |
| StarPower Semiconductor |
| Sinocat Environmental |
StarPower Semiconductor and Sinocat Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with StarPower Semiconductor and Sinocat Environmental
The main advantage of trading using opposite StarPower Semiconductor and Sinocat Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if StarPower Semiconductor position performs unexpectedly, Sinocat Environmental 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 Sinocat Environmental will offset losses from the drop in Sinocat Environmental's long position.| StarPower Semiconductor vs. Xiamen Jihong Package | StarPower Semiconductor vs. Qingdao Foods Co | StarPower Semiconductor vs. Eit Environmental Development | StarPower Semiconductor vs. Great Sun Foods Co |
| Sinocat Environmental vs. Citic Offshore Helicopter | Sinocat Environmental vs. Anji Foodstuff Co | Sinocat Environmental vs. StarPower Semiconductor | Sinocat Environmental vs. Shantou Wanshun Package |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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