Correlation Between Lontium Semiconductor and Sichuan Fulin
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By analyzing existing cross correlation between Lontium Semiconductor Corp and Sichuan Fulin Transportation, you can compare the effects of market volatilities on Lontium Semiconductor and Sichuan Fulin 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 Sichuan Fulin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lontium Semiconductor and Sichuan Fulin.
Diversification Opportunities for Lontium Semiconductor and Sichuan Fulin
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lontium and Sichuan is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Lontium Semiconductor Corp and Sichuan Fulin Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Fulin Transp 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 Sichuan Fulin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Fulin Transp has no effect on the direction of Lontium Semiconductor i.e., Lontium Semiconductor and Sichuan Fulin go up and down completely randomly.
Pair Corralation between Lontium Semiconductor and Sichuan Fulin
Assuming the 90 days trading horizon Lontium Semiconductor Corp is expected to generate 1.95 times more return on investment than Sichuan Fulin. However, Lontium Semiconductor is 1.95 times more volatile than Sichuan Fulin Transportation. It trades about 0.17 of its potential returns per unit of risk. Sichuan Fulin Transportation is currently generating about 0.17 per unit of risk. If you would invest 7,850 in Lontium Semiconductor Corp on November 3, 2024 and sell it today you would earn a total of 1,134 from holding Lontium Semiconductor Corp or generate 14.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lontium Semiconductor Corp vs. Sichuan Fulin Transportation
Performance |
| Timeline |
| Lontium Semiconductor |
| Sichuan Fulin Transp |
Lontium Semiconductor and Sichuan Fulin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lontium Semiconductor and Sichuan Fulin
The main advantage of trading using opposite Lontium Semiconductor and Sichuan Fulin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lontium Semiconductor position performs unexpectedly, Sichuan Fulin 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 Sichuan Fulin will offset losses from the drop in Sichuan Fulin's long position.| Lontium Semiconductor vs. Glodon Software Co | Lontium Semiconductor vs. Guangzhou Jinyi Media | Lontium Semiconductor vs. Shandong Publishing Media | Lontium Semiconductor vs. Mango Excellent Media |
| Sichuan Fulin vs. Runjian Communication Co | Sichuan Fulin vs. Beijing Bewinner Communications | Sichuan Fulin vs. Eastern Communications Co | Sichuan Fulin vs. Lecron Energy Saving |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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