Correlation Between Nexchip Semiconductor and CGN Nuclear
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By analyzing existing cross correlation between Nexchip Semiconductor Corp and CGN Nuclear Technology, you can compare the effects of market volatilities on Nexchip Semiconductor and CGN Nuclear 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 Nexchip Semiconductor with a short position of CGN Nuclear. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nexchip Semiconductor and CGN Nuclear.
Diversification Opportunities for Nexchip Semiconductor and CGN Nuclear
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Nexchip and CGN is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Nexchip Semiconductor Corp and CGN Nuclear Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CGN Nuclear Technology and Nexchip 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 Nexchip Semiconductor Corp are associated (or correlated) with CGN Nuclear. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CGN Nuclear Technology has no effect on the direction of Nexchip Semiconductor i.e., Nexchip Semiconductor and CGN Nuclear go up and down completely randomly.
Pair Corralation between Nexchip Semiconductor and CGN Nuclear
Assuming the 90 days trading horizon Nexchip Semiconductor Corp is expected to generate 1.11 times more return on investment than CGN Nuclear. However, Nexchip Semiconductor is 1.11 times more volatile than CGN Nuclear Technology. It trades about 0.05 of its potential returns per unit of risk. CGN Nuclear Technology is currently generating about 0.01 per unit of risk. If you would invest 1,898 in Nexchip Semiconductor Corp on August 31, 2024 and sell it today you would earn a total of 728.00 from holding Nexchip Semiconductor Corp or generate 38.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.72% |
| Values | Daily Returns |
Nexchip Semiconductor Corp vs. CGN Nuclear Technology
Performance |
| Timeline |
| Nexchip Semiconductor |
| CGN Nuclear Technology |
Nexchip Semiconductor and CGN Nuclear Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nexchip Semiconductor and CGN Nuclear
The main advantage of trading using opposite Nexchip Semiconductor and CGN Nuclear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nexchip Semiconductor position performs unexpectedly, CGN Nuclear 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 CGN Nuclear will offset losses from the drop in CGN Nuclear's long position.| Nexchip Semiconductor vs. Kweichow Moutai Co | Nexchip Semiconductor vs. NAURA Technology Group | Nexchip Semiconductor vs. APT Medical | Nexchip Semiconductor vs. Contemporary Amperex Technology |
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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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