Correlation Between Yifeng Pharmacy and StarPower Semiconductor
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By analyzing existing cross correlation between Yifeng Pharmacy and StarPower Semiconductor, you can compare the effects of market volatilities on Yifeng Pharmacy and StarPower Semiconductor 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 Yifeng Pharmacy with a short position of StarPower Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yifeng Pharmacy and StarPower Semiconductor.
Diversification Opportunities for Yifeng Pharmacy and StarPower Semiconductor
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Yifeng and StarPower is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Yifeng Pharmacy and StarPower Semiconductor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on StarPower Semiconductor and Yifeng Pharmacy 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 Yifeng Pharmacy are associated (or correlated) with StarPower Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of StarPower Semiconductor has no effect on the direction of Yifeng Pharmacy i.e., Yifeng Pharmacy and StarPower Semiconductor go up and down completely randomly.
Pair Corralation between Yifeng Pharmacy and StarPower Semiconductor
Assuming the 90 days trading horizon Yifeng Pharmacy is expected to generate 1.35 times less return on investment than StarPower Semiconductor. In addition to that, Yifeng Pharmacy is 1.0 times more volatile than StarPower Semiconductor. It trades about 0.12 of its total potential returns per unit of risk. StarPower Semiconductor is currently generating about 0.16 per unit of volatility. If you would invest 7,140 in StarPower Semiconductor on September 2, 2024 and sell it today you would earn a total of 2,892 from holding StarPower Semiconductor or generate 40.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yifeng Pharmacy vs. StarPower Semiconductor
Performance |
| Timeline |
| Yifeng Pharmacy |
| StarPower Semiconductor |
Yifeng Pharmacy and StarPower Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yifeng Pharmacy and StarPower Semiconductor
The main advantage of trading using opposite Yifeng Pharmacy and StarPower Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yifeng Pharmacy position performs unexpectedly, StarPower Semiconductor 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 StarPower Semiconductor will offset losses from the drop in StarPower Semiconductor's long position.| Yifeng Pharmacy vs. Zoy Home Furnishing | Yifeng Pharmacy vs. Xiamen Goldenhome Co | Yifeng Pharmacy vs. CITIC Guoan Information | Yifeng Pharmacy vs. Ningbo Homelink Eco iTech |
| StarPower Semiconductor vs. Industrial and Commercial | StarPower Semiconductor vs. Kweichow Moutai Co | StarPower Semiconductor vs. Agricultural Bank of | StarPower Semiconductor vs. China Mobile Limited |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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