Correlation Between Lontium Semiconductor and China State
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By analyzing existing cross correlation between Lontium Semiconductor Corp and China State Construction, you can compare the effects of market volatilities on Lontium Semiconductor and China State 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 China State. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lontium Semiconductor and China State.
Diversification Opportunities for Lontium Semiconductor and China State
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lontium and China is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Lontium Semiconductor Corp and China State Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China State Construction 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 China State. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China State Construction has no effect on the direction of Lontium Semiconductor i.e., Lontium Semiconductor and China State go up and down completely randomly.
Pair Corralation between Lontium Semiconductor and China State
Assuming the 90 days trading horizon Lontium Semiconductor Corp is expected to generate 5.0 times more return on investment than China State. However, Lontium Semiconductor is 5.0 times more volatile than China State Construction. It trades about 0.21 of its potential returns per unit of risk. China State Construction is currently generating about -0.18 per unit of risk. If you would invest 6,151 in Lontium Semiconductor Corp on November 3, 2024 and sell it today you would earn a total of 2,833 from holding Lontium Semiconductor Corp or generate 46.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lontium Semiconductor Corp vs. China State Construction
Performance |
| Timeline |
| Lontium Semiconductor |
| China State Construction |
Lontium Semiconductor and China State Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lontium Semiconductor and China State
The main advantage of trading using opposite Lontium Semiconductor and China State positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lontium Semiconductor position performs unexpectedly, China State 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 China State will offset losses from the drop in China State'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 |
| China State vs. Peoples Insurance of | China State vs. Southern PublishingMedia Co | China State vs. Shenwu Energy Saving | China State 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 CEOs Directory module to screen CEOs from public companies around the world.
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