Correlation Between Bonny Worldwide and Sinopower Semiconductor
Can any of the company-specific risk be diversified away by investing in both Bonny Worldwide and Sinopower Semiconductor at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Bonny Worldwide and Sinopower Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bonny Worldwide and Sinopower Semiconductor, you can compare the effects of market volatilities on Bonny Worldwide and Sinopower 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 Bonny Worldwide with a short position of Sinopower Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bonny Worldwide and Sinopower Semiconductor.
Diversification Opportunities for Bonny Worldwide and Sinopower Semiconductor
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bonny and Sinopower is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Bonny Worldwide and Sinopower Semiconductor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinopower Semiconductor and Bonny Worldwide 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 Bonny Worldwide are associated (or correlated) with Sinopower Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinopower Semiconductor has no effect on the direction of Bonny Worldwide i.e., Bonny Worldwide and Sinopower Semiconductor go up and down completely randomly.
Pair Corralation between Bonny Worldwide and Sinopower Semiconductor
Assuming the 90 days trading horizon Bonny Worldwide is expected to under-perform the Sinopower Semiconductor. In addition to that, Bonny Worldwide is 1.54 times more volatile than Sinopower Semiconductor. It trades about -0.14 of its total potential returns per unit of risk. Sinopower Semiconductor is currently generating about 0.04 per unit of volatility. If you would invest 9,590 in Sinopower Semiconductor on October 28, 2024 and sell it today you would earn a total of 110.00 from holding Sinopower Semiconductor or generate 1.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bonny Worldwide vs. Sinopower Semiconductor
Performance |
| Timeline |
| Bonny Worldwide |
| Sinopower Semiconductor |
Bonny Worldwide and Sinopower Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bonny Worldwide and Sinopower Semiconductor
The main advantage of trading using opposite Bonny Worldwide and Sinopower Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bonny Worldwide position performs unexpectedly, Sinopower 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 Sinopower Semiconductor will offset losses from the drop in Sinopower Semiconductor's long position.| Bonny Worldwide vs. Paiho Shih Holdings | Bonny Worldwide vs. Thunder Tiger Corp | Bonny Worldwide vs. Feng Tay Enterprises | Bonny Worldwide vs. Sinyi Realty |
| Sinopower Semiconductor vs. Excelliance MOS | Sinopower Semiconductor vs. Niko Semiconductor Co | Sinopower Semiconductor vs. Advanced Power Electronics | Sinopower Semiconductor vs. Chipbond Technology |
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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