Correlation Between Suzhou Weizhixiang and Shannon Semiconductor
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By analyzing existing cross correlation between Suzhou Weizhixiang Food and Shannon Semiconductor Technology, you can compare the effects of market volatilities on Suzhou Weizhixiang and Shannon 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 Suzhou Weizhixiang with a short position of Shannon Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Weizhixiang and Shannon Semiconductor.
Diversification Opportunities for Suzhou Weizhixiang and Shannon Semiconductor
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Suzhou and Shannon is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Weizhixiang Food and Shannon Semiconductor Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shannon Semiconductor and Suzhou Weizhixiang 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 Suzhou Weizhixiang Food are associated (or correlated) with Shannon Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shannon Semiconductor has no effect on the direction of Suzhou Weizhixiang i.e., Suzhou Weizhixiang and Shannon Semiconductor go up and down completely randomly.
Pair Corralation between Suzhou Weizhixiang and Shannon Semiconductor
Assuming the 90 days trading horizon Suzhou Weizhixiang Food is expected to under-perform the Shannon Semiconductor. In addition to that, Suzhou Weizhixiang is 1.07 times more volatile than Shannon Semiconductor Technology. It trades about -0.18 of its total potential returns per unit of risk. Shannon Semiconductor Technology is currently generating about -0.04 per unit of volatility. If you would invest 2,923 in Shannon Semiconductor Technology on October 24, 2024 and sell it today you would lose (74.00) from holding Shannon Semiconductor Technology or give up 2.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Weizhixiang Food vs. Shannon Semiconductor Technolo
Performance |
| Timeline |
| Suzhou Weizhixiang Food |
| Shannon Semiconductor |
Suzhou Weizhixiang and Shannon Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Weizhixiang and Shannon Semiconductor
The main advantage of trading using opposite Suzhou Weizhixiang and Shannon Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Weizhixiang position performs unexpectedly, Shannon 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 Shannon Semiconductor will offset losses from the drop in Shannon Semiconductor's long position.| Suzhou Weizhixiang vs. Cambricon Technologies Corp | Suzhou Weizhixiang vs. SGSG Sciencetechnology Co | Suzhou Weizhixiang vs. Loongson Technology Corp | Suzhou Weizhixiang vs. Jiangsu Flowers King |
| Shannon Semiconductor vs. Qingdao Foods Co | Shannon Semiconductor vs. Suzhou Weizhixiang Food | Shannon Semiconductor vs. Ligao Foods CoLtd | Shannon Semiconductor vs. Jiamei Food Packaging |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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