Correlation Between Anhui Huaheng and Shannon Semiconductor
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By analyzing existing cross correlation between Anhui Huaheng Biotechnology and Shannon Semiconductor Technology, you can compare the effects of market volatilities on Anhui Huaheng and Shannon 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 Anhui Huaheng with a short position of Shannon Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Huaheng and Shannon Semiconductor.
Diversification Opportunities for Anhui Huaheng and Shannon Semiconductor
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anhui and Shannon is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Huaheng Biotechnology and Shannon Semiconductor Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shannon Semiconductor and Anhui Huaheng 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 Anhui Huaheng Biotechnology are associated (or correlated) with Shannon Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shannon Semiconductor has no effect on the direction of Anhui Huaheng i.e., Anhui Huaheng and Shannon Semiconductor go up and down completely randomly.
Pair Corralation between Anhui Huaheng and Shannon Semiconductor
Assuming the 90 days trading horizon Anhui Huaheng Biotechnology is expected to under-perform the Shannon Semiconductor. But the stock apears to be less risky and, when comparing its historical volatility, Anhui Huaheng Biotechnology is 1.25 times less risky than Shannon Semiconductor. The stock trades about -0.74 of its potential returns per unit of risk. The Shannon Semiconductor Technology is currently generating about -0.17 of returns per unit of risk over similar time horizon. If you would invest 2,981 in Shannon Semiconductor Technology on October 12, 2024 and sell it today you would lose (268.00) from holding Shannon Semiconductor Technology or give up 8.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Huaheng Biotechnology vs. Shannon Semiconductor Technolo
Performance |
| Timeline |
| Anhui Huaheng Biotec |
| Shannon Semiconductor |
Anhui Huaheng and Shannon Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Huaheng and Shannon Semiconductor
The main advantage of trading using opposite Anhui Huaheng and Shannon Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Huaheng position performs unexpectedly, Shannon 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 Shannon Semiconductor will offset losses from the drop in Shannon Semiconductor's long position.| Anhui Huaheng vs. Yankershop Food Co | Anhui Huaheng vs. Chongqing Brewery Co | Anhui Huaheng vs. Zhongfu Information | Anhui Huaheng vs. Eastroc Beverage Group |
| Shannon Semiconductor vs. JuneYao Dairy Co | Shannon Semiconductor vs. Tibet Huayu Mining | Shannon Semiconductor vs. Shenzhen Topway Video | Shannon Semiconductor vs. Shengda Mining Co |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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