Correlation Between Nexchip Semiconductor and Chahua Modern
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By analyzing existing cross correlation between Nexchip Semiconductor Corp and Chahua Modern Housewares, you can compare the effects of market volatilities on Nexchip Semiconductor and Chahua Modern 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 Chahua Modern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nexchip Semiconductor and Chahua Modern.
Diversification Opportunities for Nexchip Semiconductor and Chahua Modern
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Nexchip and Chahua is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Nexchip Semiconductor Corp and Chahua Modern Housewares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chahua Modern Housewares 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 Chahua Modern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chahua Modern Housewares has no effect on the direction of Nexchip Semiconductor i.e., Nexchip Semiconductor and Chahua Modern go up and down completely randomly.
Pair Corralation between Nexchip Semiconductor and Chahua Modern
Assuming the 90 days trading horizon Nexchip Semiconductor Corp is expected to generate 0.8 times more return on investment than Chahua Modern. However, Nexchip Semiconductor Corp is 1.25 times less risky than Chahua Modern. It trades about 0.04 of its potential returns per unit of risk. Chahua Modern Housewares is currently generating about -0.05 per unit of risk. If you would invest 2,613 in Nexchip Semiconductor Corp on September 13, 2024 and sell it today you would earn a total of 53.00 from holding Nexchip Semiconductor Corp or generate 2.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nexchip Semiconductor Corp vs. Chahua Modern Housewares
Performance |
| Timeline |
| Nexchip Semiconductor |
| Chahua Modern Housewares |
Nexchip Semiconductor and Chahua Modern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nexchip Semiconductor and Chahua Modern
The main advantage of trading using opposite Nexchip Semiconductor and Chahua Modern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nexchip Semiconductor position performs unexpectedly, Chahua Modern 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 Chahua Modern will offset losses from the drop in Chahua Modern's long position.| Nexchip Semiconductor vs. Hua Xia Bank | Nexchip Semiconductor vs. Guosheng Financial Holding | Nexchip Semiconductor vs. Xinjiang Tianrun Dairy | Nexchip Semiconductor vs. Guilin Seamild Foods |
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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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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