Correlation Between Yuanjie Semiconductor and Lens Technology
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By analyzing existing cross correlation between Yuanjie Semiconductor Technology and Lens Technology Co, you can compare the effects of market volatilities on Yuanjie Semiconductor and Lens Technology 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 Yuanjie Semiconductor with a short position of Lens Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuanjie Semiconductor and Lens Technology.
Diversification Opportunities for Yuanjie Semiconductor and Lens Technology
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Yuanjie and Lens is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Yuanjie Semiconductor Technolo and Lens Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lens Technology and Yuanjie 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 Yuanjie Semiconductor Technology are associated (or correlated) with Lens Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lens Technology has no effect on the direction of Yuanjie Semiconductor i.e., Yuanjie Semiconductor and Lens Technology go up and down completely randomly.
Pair Corralation between Yuanjie Semiconductor and Lens Technology
Assuming the 90 days trading horizon Yuanjie Semiconductor is expected to generate 2.71 times less return on investment than Lens Technology. In addition to that, Yuanjie Semiconductor is 1.82 times more volatile than Lens Technology Co. It trades about 0.01 of its total potential returns per unit of risk. Lens Technology Co is currently generating about 0.07 per unit of volatility. If you would invest 1,278 in Lens Technology Co on October 29, 2024 and sell it today you would earn a total of 1,373 from holding Lens Technology Co or generate 107.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yuanjie Semiconductor Technolo vs. Lens Technology Co
Performance |
| Timeline |
| Yuanjie Semiconductor |
| Lens Technology |
Yuanjie Semiconductor and Lens Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuanjie Semiconductor and Lens Technology
The main advantage of trading using opposite Yuanjie Semiconductor and Lens Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuanjie Semiconductor position performs unexpectedly, Lens Technology 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 Lens Technology will offset losses from the drop in Lens Technology's long position.The idea behind Yuanjie Semiconductor Technology and Lens Technology Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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