Correlation Between CHINA TONTINE and MagnaChip Semiconductor
Can any of the company-specific risk be diversified away by investing in both CHINA TONTINE and MagnaChip 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 CHINA TONTINE and MagnaChip Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CHINA TONTINE WINES and MagnaChip Semiconductor Corp, you can compare the effects of market volatilities on CHINA TONTINE and MagnaChip 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 CHINA TONTINE with a short position of MagnaChip Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHINA TONTINE and MagnaChip Semiconductor.
Diversification Opportunities for CHINA TONTINE and MagnaChip Semiconductor
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CHINA and MagnaChip is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CHINA TONTINE WINES and MagnaChip Semiconductor Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MagnaChip Semiconductor and CHINA TONTINE 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 CHINA TONTINE WINES are associated (or correlated) with MagnaChip Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MagnaChip Semiconductor has no effect on the direction of CHINA TONTINE i.e., CHINA TONTINE and MagnaChip Semiconductor go up and down completely randomly.
Pair Corralation between CHINA TONTINE and MagnaChip Semiconductor
If you would invest 7.00 in CHINA TONTINE WINES on November 6, 2024 and sell it today you would earn a total of 0.00 from holding CHINA TONTINE WINES or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
CHINA TONTINE WINES vs. MagnaChip Semiconductor Corp
Performance |
| Timeline |
| CHINA TONTINE WINES |
| MagnaChip Semiconductor |
CHINA TONTINE and MagnaChip Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHINA TONTINE and MagnaChip Semiconductor
The main advantage of trading using opposite CHINA TONTINE and MagnaChip Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHINA TONTINE position performs unexpectedly, MagnaChip 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 MagnaChip Semiconductor will offset losses from the drop in MagnaChip Semiconductor's long position.| CHINA TONTINE vs. DAIRY FARM INTL | CHINA TONTINE vs. Applied Materials | CHINA TONTINE vs. Federal Agricultural Mortgage | CHINA TONTINE vs. The Yokohama Rubber |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |