Correlation Between Guangzhou Hongli and Ingenic Semiconductor
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By analyzing existing cross correlation between Guangzhou Hongli Opto and Ingenic Semiconductor, you can compare the effects of market volatilities on Guangzhou Hongli and Ingenic 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 Guangzhou Hongli with a short position of Ingenic Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Hongli and Ingenic Semiconductor.
Diversification Opportunities for Guangzhou Hongli and Ingenic Semiconductor
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangzhou and Ingenic is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Hongli Opto and Ingenic Semiconductor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ingenic Semiconductor and Guangzhou Hongli 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 Guangzhou Hongli Opto are associated (or correlated) with Ingenic Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ingenic Semiconductor has no effect on the direction of Guangzhou Hongli i.e., Guangzhou Hongli and Ingenic Semiconductor go up and down completely randomly.
Pair Corralation between Guangzhou Hongli and Ingenic Semiconductor
Assuming the 90 days trading horizon Guangzhou Hongli Opto is expected to under-perform the Ingenic Semiconductor. But the stock apears to be less risky and, when comparing its historical volatility, Guangzhou Hongli Opto is 1.0 times less risky than Ingenic Semiconductor. The stock trades about -0.13 of its potential returns per unit of risk. The Ingenic Semiconductor is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 6,931 in Ingenic Semiconductor on October 3, 2024 and sell it today you would lose (111.00) from holding Ingenic Semiconductor or give up 1.6% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Guangzhou Hongli Opto vs. Ingenic Semiconductor
Performance |
Timeline |
Guangzhou Hongli Opto |
Ingenic Semiconductor |
Guangzhou Hongli and Ingenic Semiconductor Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guangzhou Hongli and Ingenic Semiconductor
The main advantage of trading using opposite Guangzhou Hongli and Ingenic Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Hongli position performs unexpectedly, Ingenic 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 Ingenic Semiconductor will offset losses from the drop in Ingenic Semiconductor's long position.Guangzhou Hongli vs. Industrial and Commercial | Guangzhou Hongli vs. China Construction Bank | Guangzhou Hongli vs. Bank of China | Guangzhou Hongli vs. Agricultural Bank of |
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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