Correlation Between Sinopower Semiconductor and WIN Semiconductors
Can any of the company-specific risk be diversified away by investing in both Sinopower Semiconductor and WIN Semiconductors 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 Sinopower Semiconductor and WIN Semiconductors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sinopower Semiconductor and WIN Semiconductors, you can compare the effects of market volatilities on Sinopower Semiconductor and WIN Semiconductors 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 Sinopower Semiconductor with a short position of WIN Semiconductors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinopower Semiconductor and WIN Semiconductors.
Diversification Opportunities for Sinopower Semiconductor and WIN Semiconductors
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sinopower and WIN is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Sinopower Semiconductor and WIN Semiconductors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WIN Semiconductors and Sinopower 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 Sinopower Semiconductor are associated (or correlated) with WIN Semiconductors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WIN Semiconductors has no effect on the direction of Sinopower Semiconductor i.e., Sinopower Semiconductor and WIN Semiconductors go up and down completely randomly.
Pair Corralation between Sinopower Semiconductor and WIN Semiconductors
Assuming the 90 days trading horizon Sinopower Semiconductor is expected to generate 0.86 times more return on investment than WIN Semiconductors. However, Sinopower Semiconductor is 1.17 times less risky than WIN Semiconductors. It trades about 0.0 of its potential returns per unit of risk. WIN Semiconductors is currently generating about -0.04 per unit of risk. If you would invest 10,100 in Sinopower Semiconductor on September 12, 2024 and sell it today you would lose (850.00) from holding Sinopower Semiconductor or give up 8.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinopower Semiconductor vs. WIN Semiconductors
Performance |
| Timeline |
| Sinopower Semiconductor |
| WIN Semiconductors |
Sinopower Semiconductor and WIN Semiconductors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinopower Semiconductor and WIN Semiconductors
The main advantage of trading using opposite Sinopower Semiconductor and WIN Semiconductors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinopower Semiconductor position performs unexpectedly, WIN Semiconductors 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 WIN Semiconductors will offset losses from the drop in WIN Semiconductors' long position.| Sinopower Semiconductor vs. WIN Semiconductors | Sinopower Semiconductor vs. GlobalWafers Co | Sinopower Semiconductor vs. Novatek Microelectronics Corp | Sinopower Semiconductor vs. Ruentex Development Co |
| WIN Semiconductors vs. GlobalWafers Co | WIN Semiconductors vs. Novatek Microelectronics Corp | WIN Semiconductors vs. Ruentex Development Co | WIN Semiconductors 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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