Correlation Between Will Semiconductor and CITIC Guoan
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By analyzing existing cross correlation between Will Semiconductor Co and CITIC Guoan Information, you can compare the effects of market volatilities on Will Semiconductor and CITIC Guoan 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 Will Semiconductor with a short position of CITIC Guoan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Will Semiconductor and CITIC Guoan.
Diversification Opportunities for Will Semiconductor and CITIC Guoan
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Will and CITIC is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Will Semiconductor Co and CITIC Guoan Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIC Guoan Information and Will 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 Will Semiconductor Co are associated (or correlated) with CITIC Guoan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIC Guoan Information has no effect on the direction of Will Semiconductor i.e., Will Semiconductor and CITIC Guoan go up and down completely randomly.
Pair Corralation between Will Semiconductor and CITIC Guoan
Assuming the 90 days trading horizon Will Semiconductor is expected to generate 2.13 times less return on investment than CITIC Guoan. But when comparing it to its historical volatility, Will Semiconductor Co is 1.34 times less risky than CITIC Guoan. It trades about 0.05 of its potential returns per unit of risk. CITIC Guoan Information is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 182.00 in CITIC Guoan Information on November 3, 2024 and sell it today you would earn a total of 106.00 from holding CITIC Guoan Information or generate 58.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Will Semiconductor Co vs. CITIC Guoan Information
Performance |
| Timeline |
| Will Semiconductor |
| CITIC Guoan Information |
Will Semiconductor and CITIC Guoan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Will Semiconductor and CITIC Guoan
The main advantage of trading using opposite Will Semiconductor and CITIC Guoan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Will Semiconductor position performs unexpectedly, CITIC Guoan 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 CITIC Guoan will offset losses from the drop in CITIC Guoan's long position.| Will Semiconductor vs. JCHX Mining Management | Will Semiconductor vs. Spring Airlines Co | Will Semiconductor vs. Tibet Huayu Mining | Will Semiconductor vs. Pengxin International Mining |
| CITIC Guoan vs. CIMC Vehicles Co | CITIC Guoan vs. Dongfeng Automobile Co | CITIC Guoan vs. Zhejiang Qianjiang Motorcycle | CITIC Guoan vs. Aier Eye Hospital |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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