Correlation Between Southchip Semiconductor and Great Sun
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By analyzing existing cross correlation between Southchip Semiconductor Technology and Great Sun Foods Co, you can compare the effects of market volatilities on Southchip Semiconductor and Great Sun 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 Southchip Semiconductor with a short position of Great Sun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Southchip Semiconductor and Great Sun.
Diversification Opportunities for Southchip Semiconductor and Great Sun
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Southchip and Great is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Southchip Semiconductor Techno and Great Sun Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great Sun Foods and Southchip 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 Southchip Semiconductor Technology are associated (or correlated) with Great Sun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great Sun Foods has no effect on the direction of Southchip Semiconductor i.e., Southchip Semiconductor and Great Sun go up and down completely randomly.
Pair Corralation between Southchip Semiconductor and Great Sun
Assuming the 90 days trading horizon Southchip Semiconductor Technology is expected to generate 0.7 times more return on investment than Great Sun. However, Southchip Semiconductor Technology is 1.43 times less risky than Great Sun. It trades about 0.06 of its potential returns per unit of risk. Great Sun Foods Co is currently generating about -0.05 per unit of risk. If you would invest 3,649 in Southchip Semiconductor Technology on August 30, 2024 and sell it today you would earn a total of 119.00 from holding Southchip Semiconductor Technology or generate 3.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Southchip Semiconductor Techno vs. Great Sun Foods Co
Performance |
| Timeline |
| Southchip Semiconductor |
| Great Sun Foods |
Southchip Semiconductor and Great Sun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Southchip Semiconductor and Great Sun
The main advantage of trading using opposite Southchip Semiconductor and Great Sun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Southchip Semiconductor position performs unexpectedly, Great Sun 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 Great Sun will offset losses from the drop in Great Sun's long position.| Southchip Semiconductor vs. Ming Yang Smart | Southchip Semiconductor vs. 159681 | Southchip Semiconductor vs. 159005 | Southchip Semiconductor vs. 516220 |
| Great Sun vs. Industrial and Commercial | Great Sun vs. China Construction Bank | Great Sun vs. Agricultural Bank of | Great Sun vs. Bank of China |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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