Correlation Between Changchun BCHT and Lontium Semiconductor
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By analyzing existing cross correlation between Changchun BCHT Biotechnology and Lontium Semiconductor Corp, you can compare the effects of market volatilities on Changchun BCHT 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 Changchun BCHT with a short position of Lontium Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun BCHT and Lontium Semiconductor.
Diversification Opportunities for Changchun BCHT and Lontium Semiconductor
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Changchun and Lontium is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Changchun BCHT Biotechnology and Lontium Semiconductor Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lontium Semiconductor and Changchun BCHT 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 Changchun BCHT Biotechnology 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 Changchun BCHT i.e., Changchun BCHT and Lontium Semiconductor go up and down completely randomly.
Pair Corralation between Changchun BCHT and Lontium Semiconductor
Assuming the 90 days trading horizon Changchun BCHT Biotechnology is expected to under-perform the Lontium Semiconductor. But the stock apears to be less risky and, when comparing its historical volatility, Changchun BCHT Biotechnology is 3.15 times less risky than Lontium Semiconductor. The stock trades about -0.24 of its potential returns per unit of risk. The Lontium Semiconductor Corp is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 6,240 in Lontium Semiconductor Corp on October 30, 2024 and sell it today you would earn a total of 2,744 from holding Lontium Semiconductor Corp or generate 43.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changchun BCHT Biotechnology vs. Lontium Semiconductor Corp
Performance |
| Timeline |
| Changchun BCHT Biote |
| Lontium Semiconductor |
Changchun BCHT and Lontium Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun BCHT and Lontium Semiconductor
The main advantage of trading using opposite Changchun BCHT and Lontium Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun BCHT 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.| Changchun BCHT vs. GreenTech Environmental Co | Changchun BCHT vs. Shanghai CEO Environmental | Changchun BCHT vs. Cansino Biologics | Changchun BCHT vs. Shenzhen MYS Environmental |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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