Correlation Between Semiconductor Manufacturing and Xinke Material
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By analyzing existing cross correlation between Semiconductor Manufacturing Electronics and Xinke Material, you can compare the effects of market volatilities on Semiconductor Manufacturing and Xinke Material 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 Xinke Material. Check out your portfolio center. Please also check ongoing floating volatility patterns of Semiconductor Manufacturing and Xinke Material.
Diversification Opportunities for Semiconductor Manufacturing and Xinke Material
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Semiconductor and Xinke is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Semiconductor Manufacturing El and Xinke Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinke 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 Xinke Material. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinke Material has no effect on the direction of Semiconductor Manufacturing i.e., Semiconductor Manufacturing and Xinke Material go up and down completely randomly.
Pair Corralation between Semiconductor Manufacturing and Xinke Material
Assuming the 90 days trading horizon Semiconductor Manufacturing Electronics is expected to under-perform the Xinke Material. But the stock apears to be less risky and, when comparing its historical volatility, Semiconductor Manufacturing Electronics is 1.26 times less risky than Xinke Material. The stock trades about -0.01 of its potential returns per unit of risk. The Xinke Material is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 270.00 in Xinke Material on October 11, 2024 and sell it today you would earn a total of 112.00 from holding Xinke Material or generate 41.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 85.95% |
| Values | Daily Returns |
Semiconductor Manufacturing El vs. Xinke Material
Performance |
| Timeline |
| Semiconductor Manufacturing |
| Xinke Material |
Semiconductor Manufacturing and Xinke Material Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Semiconductor Manufacturing and Xinke Material
The main advantage of trading using opposite Semiconductor Manufacturing and Xinke Material positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Semiconductor Manufacturing position performs unexpectedly, Xinke Material 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 Xinke Material will offset losses from the drop in Xinke Material'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 |
| Xinke Material vs. Semiconductor Manufacturing Electronics | Xinke Material vs. Jiujiang Shanshui Technology | Xinke Material vs. Jinlong Machinery Electronic | Xinke Material vs. Success Electronics |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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