Correlation Between Lontium Semiconductor and Guangdong Electric
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By analyzing existing cross correlation between Lontium Semiconductor Corp and Guangdong Electric Power, you can compare the effects of market volatilities on Lontium Semiconductor and Guangdong Electric 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 Guangdong Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lontium Semiconductor and Guangdong Electric.
Diversification Opportunities for Lontium Semiconductor and Guangdong Electric
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lontium and Guangdong is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Lontium Semiconductor Corp and Guangdong Electric Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Electric Power 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 Guangdong Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Electric Power has no effect on the direction of Lontium Semiconductor i.e., Lontium Semiconductor and Guangdong Electric go up and down completely randomly.
Pair Corralation between Lontium Semiconductor and Guangdong Electric
Assuming the 90 days trading horizon Lontium Semiconductor Corp is expected to generate 4.21 times more return on investment than Guangdong Electric. However, Lontium Semiconductor is 4.21 times more volatile than Guangdong Electric Power. It trades about 0.04 of its potential returns per unit of risk. Guangdong Electric Power is currently generating about -0.01 per unit of risk. If you would invest 5,782 in Lontium Semiconductor Corp on October 16, 2024 and sell it today you would earn a total of 2,486 from holding Lontium Semiconductor Corp or generate 43.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 96.65% |
| Values | Daily Returns |
Lontium Semiconductor Corp vs. Guangdong Electric Power
Performance |
| Timeline |
| Lontium Semiconductor |
| Guangdong Electric Power |
Lontium Semiconductor and Guangdong Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lontium Semiconductor and Guangdong Electric
The main advantage of trading using opposite Lontium Semiconductor and Guangdong Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lontium Semiconductor position performs unexpectedly, Guangdong Electric 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 Guangdong Electric will offset losses from the drop in Guangdong Electric's long position.| Lontium Semiconductor vs. Lootom Telcovideo Network | Lontium Semiconductor vs. Tianshan Aluminum Group | Lontium Semiconductor vs. Tongyu Communication | Lontium Semiconductor vs. Sunwave Communications Co |
| Guangdong Electric vs. Everdisplay Optronics Shanghai | Guangdong Electric vs. Lontium Semiconductor Corp | Guangdong Electric vs. GRINM Semiconductor Materials | Guangdong Electric vs. Chongqing Brewery Co |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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