Correlation Between Semiconductor Manufacturing and Shengtak New
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By analyzing existing cross correlation between Semiconductor Manufacturing Electronics and Shengtak New Material, you can compare the effects of market volatilities on Semiconductor Manufacturing and Shengtak New 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 Semiconductor Manufacturing with a short position of Shengtak New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Semiconductor Manufacturing and Shengtak New.
Diversification Opportunities for Semiconductor Manufacturing and Shengtak New
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Semiconductor and Shengtak is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Semiconductor Manufacturing El and Shengtak New Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shengtak New Material and Semiconductor Manufacturing 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 Semiconductor Manufacturing Electronics are associated (or correlated) with Shengtak New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shengtak New Material has no effect on the direction of Semiconductor Manufacturing i.e., Semiconductor Manufacturing and Shengtak New go up and down completely randomly.
Pair Corralation between Semiconductor Manufacturing and Shengtak New
Assuming the 90 days trading horizon Semiconductor Manufacturing Electronics is expected to under-perform the Shengtak New. But the stock apears to be less risky and, when comparing its historical volatility, Semiconductor Manufacturing Electronics is 1.14 times less risky than Shengtak New. The stock trades about -0.74 of its potential returns per unit of risk. The Shengtak New Material is currently generating about -0.17 of returns per unit of risk over similar time horizon. If you would invest 3,324 in Shengtak New Material on October 11, 2024 and sell it today you would lose (215.00) from holding Shengtak New Material or give up 6.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Semiconductor Manufacturing El vs. Shengtak New Material
Performance |
| Timeline |
| Semiconductor Manufacturing |
| Shengtak New Material |
Semiconductor Manufacturing and Shengtak New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Semiconductor Manufacturing and Shengtak New
The main advantage of trading using opposite Semiconductor Manufacturing and Shengtak New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Semiconductor Manufacturing position performs unexpectedly, Shengtak New 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 Shengtak New will offset losses from the drop in Shengtak New's long position.| Semiconductor Manufacturing vs. Cansino Biologics | Semiconductor Manufacturing vs. China Sports Industry | Semiconductor Manufacturing vs. Shuhua Sports Co | Semiconductor Manufacturing vs. Dhc Software Co |
| Shengtak New vs. Hangzhou Gaoxin Rubber | Shengtak New vs. Shanghai Phichem Material | Shengtak New vs. Orinko Advanced Plastics | Shengtak New vs. Jilin OLED Material |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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