Correlation Between Lontium Semiconductor and Dow Jones
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By analyzing existing cross correlation between Lontium Semiconductor Corp and Dow Jones Industrial, you can compare the effects of market volatilities on Lontium Semiconductor and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lontium Semiconductor and Dow Jones.
Diversification Opportunities for Lontium Semiconductor and Dow Jones
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lontium and Dow is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Lontium Semiconductor Corp and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Lontium Semiconductor i.e., Lontium Semiconductor and Dow Jones go up and down completely randomly.
Pair Corralation between Lontium Semiconductor and Dow Jones
Assuming the 90 days trading horizon Lontium Semiconductor Corp is expected to generate 5.76 times more return on investment than Dow Jones. However, Lontium Semiconductor is 5.76 times more volatile than Dow Jones Industrial. It trades about 0.04 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.07 per unit of risk. If you would invest 5,782 in Lontium Semiconductor Corp on October 12, 2024 and sell it today you would earn a total of 2,336 from holding Lontium Semiconductor Corp or generate 40.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 92.94% |
| Values | Daily Returns |
Lontium Semiconductor Corp vs. Dow Jones Industrial
Performance |
| Timeline |
Lontium Semiconductor and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Lontium Semiconductor Corp
Pair trading matchups for Lontium Semiconductor
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Lontium Semiconductor and Dow Jones
The main advantage of trading using opposite Lontium Semiconductor and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lontium Semiconductor position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Lontium Semiconductor vs. Rising Nonferrous Metals | Lontium Semiconductor vs. Hengli Industrial Development | Lontium Semiconductor vs. Ningbo Fujia Industrial | 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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