Correlation Between Lontium Semiconductor and Jinsanjiang Silicon
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By analyzing existing cross correlation between Lontium Semiconductor Corp and Jinsanjiang Silicon Material, you can compare the effects of market volatilities on Lontium Semiconductor and Jinsanjiang Silicon 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 Jinsanjiang Silicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lontium Semiconductor and Jinsanjiang Silicon.
Diversification Opportunities for Lontium Semiconductor and Jinsanjiang Silicon
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Lontium and Jinsanjiang is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Lontium Semiconductor Corp and Jinsanjiang Silicon Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinsanjiang Silicon 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 Jinsanjiang Silicon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinsanjiang Silicon has no effect on the direction of Lontium Semiconductor i.e., Lontium Semiconductor and Jinsanjiang Silicon go up and down completely randomly.
Pair Corralation between Lontium Semiconductor and Jinsanjiang Silicon
Assuming the 90 days trading horizon Lontium Semiconductor Corp is expected to generate 1.14 times more return on investment than Jinsanjiang Silicon. However, Lontium Semiconductor is 1.14 times more volatile than Jinsanjiang Silicon Material. It trades about 0.04 of its potential returns per unit of risk. Jinsanjiang Silicon Material is currently generating about -0.01 per unit of risk. If you would invest 5,921 in Lontium Semiconductor Corp on October 16, 2024 and sell it today you would earn a total of 2,347 from holding Lontium Semiconductor Corp or generate 39.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lontium Semiconductor Corp vs. Jinsanjiang Silicon Material
Performance |
| Timeline |
| Lontium Semiconductor |
| Jinsanjiang Silicon |
Lontium Semiconductor and Jinsanjiang Silicon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lontium Semiconductor and Jinsanjiang Silicon
The main advantage of trading using opposite Lontium Semiconductor and Jinsanjiang Silicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lontium Semiconductor position performs unexpectedly, Jinsanjiang Silicon 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 Jinsanjiang Silicon will offset losses from the drop in Jinsanjiang Silicon'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 |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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