Correlation Between Lumia and Shannon Semiconductor
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By analyzing existing cross correlation between Lumia and Shannon Semiconductor Technology, you can compare the effects of market volatilities on Lumia 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 Lumia with a short position of Shannon Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lumia and Shannon Semiconductor.
Diversification Opportunities for Lumia and Shannon Semiconductor
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lumia and Shannon is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Lumia and Shannon Semiconductor Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shannon Semiconductor and Lumia 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 Lumia 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 Lumia i.e., Lumia and Shannon Semiconductor go up and down completely randomly.
Pair Corralation between Lumia and Shannon Semiconductor
Assuming the 90 days trading horizon Lumia is expected to generate 1.11 times more return on investment than Shannon Semiconductor. However, Lumia is 1.11 times more volatile than Shannon Semiconductor Technology. It trades about 0.0 of its potential returns per unit of risk. Shannon Semiconductor Technology is currently generating about -0.02 per unit of risk. If you would invest 42.00 in Lumia on December 30, 2024 and sell it today you would lose (1.00) from holding Lumia or give up 2.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lumia vs. Shannon Semiconductor Technolo
Performance |
| Timeline |
| Lumia |
| Shannon Semiconductor |
Lumia and Shannon Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lumia and Shannon Semiconductor
The main advantage of trading using opposite Lumia and Shannon Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lumia 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.The idea behind Lumia and Shannon Semiconductor Technology 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.| Shannon Semiconductor vs. Shengtak New Material | Shannon Semiconductor vs. Orinko Advanced Plastics | Shannon Semiconductor vs. Yankershop Food Co | Shannon Semiconductor vs. NBTM New Materials |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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