Correlation Between Lontium Semiconductor and Shannon Semiconductor
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By analyzing existing cross correlation between Lontium Semiconductor Corp and Shannon Semiconductor Technology, you can compare the effects of market volatilities on Lontium Semiconductor and Shannon Semiconductor 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 Shannon Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lontium Semiconductor and Shannon Semiconductor.
Diversification Opportunities for Lontium Semiconductor and Shannon Semiconductor
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lontium and Shannon is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Lontium Semiconductor Corp and Shannon Semiconductor Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shannon Semiconductor 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 Shannon Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shannon Semiconductor has no effect on the direction of Lontium Semiconductor i.e., Lontium Semiconductor and Shannon Semiconductor go up and down completely randomly.
Pair Corralation between Lontium Semiconductor and Shannon Semiconductor
Assuming the 90 days trading horizon Lontium Semiconductor is expected to generate 1.11 times less return on investment than Shannon Semiconductor. But when comparing it to its historical volatility, Lontium Semiconductor Corp is 1.05 times less risky than Shannon Semiconductor. It trades about 0.04 of its potential returns per unit of risk. Shannon Semiconductor Technology is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,767 in Shannon Semiconductor Technology on October 16, 2024 and sell it today you would earn a total of 897.00 from holding Shannon Semiconductor Technology or generate 50.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 96.65% |
| Values | Daily Returns |
Lontium Semiconductor Corp vs. Shannon Semiconductor Technolo
Performance |
| Timeline |
| Lontium Semiconductor |
| Shannon Semiconductor |
Lontium Semiconductor and Shannon Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lontium Semiconductor and Shannon Semiconductor
The main advantage of trading using opposite Lontium Semiconductor and Shannon Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lontium Semiconductor position performs unexpectedly, Shannon Semiconductor 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 Shannon Semiconductor will offset losses from the drop in Shannon Semiconductor'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 |
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