Correlation Between Guotai Epoint and Southchip Semiconductor
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By analyzing existing cross correlation between Guotai Epoint Software and Southchip Semiconductor Technology, you can compare the effects of market volatilities on Guotai Epoint and Southchip 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 Guotai Epoint with a short position of Southchip Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guotai Epoint and Southchip Semiconductor.
Diversification Opportunities for Guotai Epoint and Southchip Semiconductor
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guotai and Southchip is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Guotai Epoint Software and Southchip Semiconductor Techno in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southchip Semiconductor and Guotai Epoint 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 Guotai Epoint Software are associated (or correlated) with Southchip Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southchip Semiconductor has no effect on the direction of Guotai Epoint i.e., Guotai Epoint and Southchip Semiconductor go up and down completely randomly.
Pair Corralation between Guotai Epoint and Southchip Semiconductor
Assuming the 90 days trading horizon Guotai Epoint Software is expected to under-perform the Southchip Semiconductor. In addition to that, Guotai Epoint is 1.07 times more volatile than Southchip Semiconductor Technology. It trades about -0.17 of its total potential returns per unit of risk. Southchip Semiconductor Technology is currently generating about 0.02 per unit of volatility. If you would invest 3,293 in Southchip Semiconductor Technology on October 14, 2024 and sell it today you would earn a total of 10.00 from holding Southchip Semiconductor Technology or generate 0.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guotai Epoint Software vs. Southchip Semiconductor Techno
Performance |
| Timeline |
| Guotai Epoint Software |
| Southchip Semiconductor |
Guotai Epoint and Southchip Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guotai Epoint and Southchip Semiconductor
The main advantage of trading using opposite Guotai Epoint and Southchip Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guotai Epoint position performs unexpectedly, Southchip 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 Southchip Semiconductor will offset losses from the drop in Southchip Semiconductor's long position.| Guotai Epoint vs. Panda Financial Holding | Guotai Epoint vs. China Everbright Bank | Guotai Epoint vs. Qilu Bank Co | Guotai Epoint vs. China Sports Industry |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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