Correlation Between Lontium Semiconductor and Ye Chiu
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By analyzing existing cross correlation between Lontium Semiconductor Corp and Ye Chiu Metal, you can compare the effects of market volatilities on Lontium Semiconductor and Ye Chiu 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 Ye Chiu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lontium Semiconductor and Ye Chiu.
Diversification Opportunities for Lontium Semiconductor and Ye Chiu
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lontium and 601388 is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Lontium Semiconductor Corp and Ye Chiu Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ye Chiu Metal 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 Ye Chiu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ye Chiu Metal has no effect on the direction of Lontium Semiconductor i.e., Lontium Semiconductor and Ye Chiu go up and down completely randomly.
Pair Corralation between Lontium Semiconductor and Ye Chiu
Assuming the 90 days trading horizon Lontium Semiconductor Corp is expected to generate 1.38 times more return on investment than Ye Chiu. However, Lontium Semiconductor is 1.38 times more volatile than Ye Chiu Metal. It trades about 0.08 of its potential returns per unit of risk. Ye Chiu Metal is currently generating about 0.04 per unit of risk. If you would invest 4,811 in Lontium Semiconductor Corp on November 3, 2024 and sell it today you would earn a total of 4,173 from holding Lontium Semiconductor Corp or generate 86.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lontium Semiconductor Corp vs. Ye Chiu Metal
Performance |
| Timeline |
| Lontium Semiconductor |
| Ye Chiu Metal |
Lontium Semiconductor and Ye Chiu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lontium Semiconductor and Ye Chiu
The main advantage of trading using opposite Lontium Semiconductor and Ye Chiu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lontium Semiconductor position performs unexpectedly, Ye Chiu 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 Ye Chiu will offset losses from the drop in Ye Chiu'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 |
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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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