Correlation Between Suzhou Oriental and Lontium Semiconductor
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By analyzing existing cross correlation between Suzhou Oriental Semiconductor and Lontium Semiconductor Corp, you can compare the effects of market volatilities on Suzhou Oriental and Lontium 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 Suzhou Oriental with a short position of Lontium Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Oriental and Lontium Semiconductor.
Diversification Opportunities for Suzhou Oriental and Lontium Semiconductor
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Suzhou and Lontium is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Oriental Semiconductor and Lontium Semiconductor Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lontium Semiconductor and Suzhou Oriental 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 Suzhou Oriental Semiconductor are associated (or correlated) with Lontium Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lontium Semiconductor has no effect on the direction of Suzhou Oriental i.e., Suzhou Oriental and Lontium Semiconductor go up and down completely randomly.
Pair Corralation between Suzhou Oriental and Lontium Semiconductor
Assuming the 90 days trading horizon Suzhou Oriental is expected to generate 1.84 times less return on investment than Lontium Semiconductor. But when comparing it to its historical volatility, Suzhou Oriental Semiconductor is 1.1 times less risky than Lontium Semiconductor. It trades about 0.11 of its potential returns per unit of risk. Lontium Semiconductor Corp is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 4,281 in Lontium Semiconductor Corp on October 18, 2024 and sell it today you would earn a total of 4,148 from holding Lontium Semiconductor Corp or generate 96.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Oriental Semiconductor vs. Lontium Semiconductor Corp
Performance |
| Timeline |
| Suzhou Oriental Semi |
| Lontium Semiconductor |
Suzhou Oriental and Lontium Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Oriental and Lontium Semiconductor
The main advantage of trading using opposite Suzhou Oriental and Lontium Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Oriental position performs unexpectedly, Lontium 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 Lontium Semiconductor will offset losses from the drop in Lontium Semiconductor's long position.| Suzhou Oriental vs. Jiahe Foods Industry | Suzhou Oriental vs. Dymatic Chemicals | Suzhou Oriental vs. Jinsanjiang Silicon Material | Suzhou Oriental vs. Dosilicon Co |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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