Correlation Between Lontium Semiconductor and HeNan Splendor
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By analyzing existing cross correlation between Lontium Semiconductor Corp and HeNan Splendor Science, you can compare the effects of market volatilities on Lontium Semiconductor and HeNan Splendor 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 Lontium Semiconductor with a short position of HeNan Splendor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lontium Semiconductor and HeNan Splendor.
Diversification Opportunities for Lontium Semiconductor and HeNan Splendor
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Lontium and HeNan is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Lontium Semiconductor Corp and HeNan Splendor Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HeNan Splendor Science and Lontium 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 Lontium Semiconductor Corp are associated (or correlated) with HeNan Splendor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HeNan Splendor Science has no effect on the direction of Lontium Semiconductor i.e., Lontium Semiconductor and HeNan Splendor go up and down completely randomly.
Pair Corralation between Lontium Semiconductor and HeNan Splendor
Assuming the 90 days trading horizon Lontium Semiconductor Corp is expected to generate 1.36 times more return on investment than HeNan Splendor. However, Lontium Semiconductor is 1.36 times more volatile than HeNan Splendor Science. It trades about 0.21 of its potential returns per unit of risk. HeNan Splendor Science is currently generating about -0.01 per unit of risk. If you would invest 6,151 in Lontium Semiconductor Corp on November 3, 2024 and sell it today you would earn a total of 2,833 from holding Lontium Semiconductor Corp or generate 46.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lontium Semiconductor Corp vs. HeNan Splendor Science
Performance |
| Timeline |
| Lontium Semiconductor |
| HeNan Splendor Science |
Lontium Semiconductor and HeNan Splendor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lontium Semiconductor and HeNan Splendor
The main advantage of trading using opposite Lontium Semiconductor and HeNan Splendor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lontium Semiconductor position performs unexpectedly, HeNan Splendor 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 HeNan Splendor will offset losses from the drop in HeNan Splendor's long position.| Lontium Semiconductor vs. Metro Investment Development | Lontium Semiconductor vs. Hubei Geoway Investment | Lontium Semiconductor vs. Western Metal Materials | Lontium Semiconductor vs. Ye Chiu Metal |
| HeNan Splendor vs. Suzhou Oriental Semiconductor | HeNan Splendor vs. Emdoor Information Co | HeNan Splendor vs. Invengo Information Technology | HeNan Splendor vs. Bonree Data Technology |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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