Correlation Between Hygon Information and Shannon Semiconductor
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By analyzing existing cross correlation between Hygon Information Technology and Shannon Semiconductor Technology, you can compare the effects of market volatilities on Hygon Information 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 Hygon Information with a short position of Shannon Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hygon Information and Shannon Semiconductor.
Diversification Opportunities for Hygon Information and Shannon Semiconductor
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hygon and Shannon is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Hygon Information Technology and Shannon Semiconductor Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shannon Semiconductor and Hygon Information 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 Hygon Information Technology 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 Hygon Information i.e., Hygon Information and Shannon Semiconductor go up and down completely randomly.
Pair Corralation between Hygon Information and Shannon Semiconductor
Assuming the 90 days trading horizon Hygon Information Technology is expected to under-perform the Shannon Semiconductor. In addition to that, Hygon Information is 1.76 times more volatile than Shannon Semiconductor Technology. It trades about -0.06 of its total potential returns per unit of risk. Shannon Semiconductor Technology is currently generating about 0.16 per unit of volatility. If you would invest 2,637 in Shannon Semiconductor Technology on November 6, 2024 and sell it today you would earn a total of 145.00 from holding Shannon Semiconductor Technology or generate 5.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hygon Information Technology vs. Shannon Semiconductor Technolo
Performance |
| Timeline |
| Hygon Information |
| Shannon Semiconductor |
Hygon Information and Shannon Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hygon Information and Shannon Semiconductor
The main advantage of trading using opposite Hygon Information and Shannon Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hygon Information 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.| Hygon Information vs. Servyou Software Group | Hygon Information vs. China National Software | Hygon Information vs. Tongyu Communication | Hygon Information vs. Gansu Huangtai Wine marketing |
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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