Correlation Between Lontium Semiconductor and Jiangsu Phoenix
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By analyzing existing cross correlation between Lontium Semiconductor Corp and Jiangsu Phoenix Publishing, you can compare the effects of market volatilities on Lontium Semiconductor and Jiangsu Phoenix 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 Jiangsu Phoenix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lontium Semiconductor and Jiangsu Phoenix.
Diversification Opportunities for Lontium Semiconductor and Jiangsu Phoenix
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lontium and Jiangsu is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Lontium Semiconductor Corp and Jiangsu Phoenix Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Phoenix Publ 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 Jiangsu Phoenix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Phoenix Publ has no effect on the direction of Lontium Semiconductor i.e., Lontium Semiconductor and Jiangsu Phoenix go up and down completely randomly.
Pair Corralation between Lontium Semiconductor and Jiangsu Phoenix
Assuming the 90 days trading horizon Lontium Semiconductor Corp is expected to generate 1.56 times more return on investment than Jiangsu Phoenix. However, Lontium Semiconductor is 1.56 times more volatile than Jiangsu Phoenix Publishing. It trades about 0.04 of its potential returns per unit of risk. Jiangsu Phoenix Publishing is currently generating about 0.04 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 Together |
| Strength | Significant |
| Accuracy | 96.65% |
| Values | Daily Returns |
Lontium Semiconductor Corp vs. Jiangsu Phoenix Publishing
Performance |
| Timeline |
| Lontium Semiconductor |
| Jiangsu Phoenix Publ |
Lontium Semiconductor and Jiangsu Phoenix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lontium Semiconductor and Jiangsu Phoenix
The main advantage of trading using opposite Lontium Semiconductor and Jiangsu Phoenix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lontium Semiconductor position performs unexpectedly, Jiangsu Phoenix 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 Jiangsu Phoenix will offset losses from the drop in Jiangsu Phoenix'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 |
| Jiangsu Phoenix vs. AVCON Information Tech | Jiangsu Phoenix vs. Ningbo MedicalSystem Biotechnology | Jiangsu Phoenix vs. Zhongshan Public Utilities | Jiangsu Phoenix vs. Fujian Wanchen Biotechnology |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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