Correlation Between Shanghai Action and Lontium Semiconductor
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By analyzing existing cross correlation between Shanghai Action Education and Lontium Semiconductor Corp, you can compare the effects of market volatilities on Shanghai Action and Lontium 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 Shanghai Action with a short position of Lontium Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Action and Lontium Semiconductor.
Diversification Opportunities for Shanghai Action and Lontium Semiconductor
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Shanghai and Lontium is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Action Education and Lontium Semiconductor Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lontium Semiconductor and Shanghai Action 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 Shanghai Action Education are associated (or correlated) with Lontium Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lontium Semiconductor has no effect on the direction of Shanghai Action i.e., Shanghai Action and Lontium Semiconductor go up and down completely randomly.
Pair Corralation between Shanghai Action and Lontium Semiconductor
Assuming the 90 days trading horizon Shanghai Action Education is expected to under-perform the Lontium Semiconductor. But the stock apears to be less risky and, when comparing its historical volatility, Shanghai Action Education is 1.92 times less risky than Lontium Semiconductor. The stock trades about -0.05 of its potential returns per unit of risk. The Lontium Semiconductor Corp is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 5,895 in Lontium Semiconductor Corp on October 14, 2024 and sell it today you would earn a total of 2,471 from holding Lontium Semiconductor Corp or generate 41.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Action Education vs. Lontium Semiconductor Corp
Performance |
| Timeline |
| Shanghai Action Education |
| Lontium Semiconductor |
Shanghai Action and Lontium Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Action and Lontium Semiconductor
The main advantage of trading using opposite Shanghai Action and Lontium Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Action position performs unexpectedly, Lontium 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 Lontium Semiconductor will offset losses from the drop in Lontium Semiconductor's long position.| Shanghai Action vs. BeiGene | Shanghai Action vs. Kweichow Moutai Co | Shanghai Action vs. Beijing Roborock Technology | Shanghai Action vs. G bits Network Technology |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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