Correlation Between Chipbond Technology and Sino American
Can any of the company-specific risk be diversified away by investing in both Chipbond Technology and Sino American at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Chipbond Technology and Sino American into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chipbond Technology and Sino American Silicon Products, you can compare the effects of market volatilities on Chipbond Technology and Sino American 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 Chipbond Technology with a short position of Sino American. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chipbond Technology and Sino American.
Diversification Opportunities for Chipbond Technology and Sino American
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chipbond and Sino is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Chipbond Technology and Sino American Silicon Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sino American Silicon and Chipbond Technology 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 Chipbond Technology are associated (or correlated) with Sino American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sino American Silicon has no effect on the direction of Chipbond Technology i.e., Chipbond Technology and Sino American go up and down completely randomly.
Pair Corralation between Chipbond Technology and Sino American
Assuming the 90 days trading horizon Chipbond Technology is expected to generate 0.73 times more return on investment than Sino American. However, Chipbond Technology is 1.37 times less risky than Sino American. It trades about -0.04 of its potential returns per unit of risk. Sino American Silicon Products is currently generating about -0.2 per unit of risk. If you would invest 6,530 in Chipbond Technology on September 12, 2024 and sell it today you would lose (170.00) from holding Chipbond Technology or give up 2.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chipbond Technology vs. Sino American Silicon Products
Performance |
| Timeline |
| Chipbond Technology |
| Sino American Silicon |
Chipbond Technology and Sino American Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chipbond Technology and Sino American
The main advantage of trading using opposite Chipbond Technology and Sino American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chipbond Technology position performs unexpectedly, Sino American 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 Sino American will offset losses from the drop in Sino American's long position.| Chipbond Technology vs. WIN Semiconductors | Chipbond Technology vs. GlobalWafers Co | Chipbond Technology vs. Novatek Microelectronics Corp | Chipbond Technology vs. Ruentex Development Co |
| Sino American vs. Elan Microelectronics Corp | Sino American vs. Greatek Electronics | Sino American vs. Ruentex Development Co | Sino American vs. WiseChip Semiconductor |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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