Correlation Between Yuanjie Semiconductor and Lontium Semiconductor
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By analyzing existing cross correlation between Yuanjie Semiconductor Technology and Lontium Semiconductor Corp, you can compare the effects of market volatilities on Yuanjie Semiconductor and Lontium Semiconductor 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 Lontium Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yuanjie Semiconductor and Lontium Semiconductor.
Diversification Opportunities for Yuanjie Semiconductor and Lontium Semiconductor
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Yuanjie and Lontium is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Yuanjie Semiconductor Technolo and Lontium Semiconductor Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lontium Semiconductor 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 Lontium Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lontium Semiconductor has no effect on the direction of Yuanjie Semiconductor i.e., Yuanjie Semiconductor and Lontium Semiconductor go up and down completely randomly.
Pair Corralation between Yuanjie Semiconductor and Lontium Semiconductor
Assuming the 90 days trading horizon Yuanjie Semiconductor Technology is expected to generate 1.32 times more return on investment than Lontium Semiconductor. However, Yuanjie Semiconductor is 1.32 times more volatile than Lontium Semiconductor Corp. It trades about 0.04 of its potential returns per unit of risk. Lontium Semiconductor Corp is currently generating about 0.04 per unit of risk. If you would invest 9,452 in Yuanjie Semiconductor Technology on October 18, 2024 and sell it today you would earn a total of 4,935 from holding Yuanjie Semiconductor Technology or generate 52.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 96.67% |
| Values | Daily Returns |
Yuanjie Semiconductor Technolo vs. Lontium Semiconductor Corp
Performance |
| Timeline |
| Yuanjie Semiconductor |
| Lontium Semiconductor |
Yuanjie Semiconductor and Lontium Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yuanjie Semiconductor and Lontium Semiconductor
The main advantage of trading using opposite Yuanjie Semiconductor and Lontium Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yuanjie Semiconductor position performs unexpectedly, Lontium Semiconductor 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 Lontium Semiconductor will offset losses from the drop in Lontium Semiconductor's long position.| Yuanjie Semiconductor vs. Lotus Health Group | Yuanjie Semiconductor vs. Ziel Home Furnishing | Yuanjie Semiconductor vs. Mingchen Health Co | Yuanjie Semiconductor vs. Shanghai Rongtai Health |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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