Correlation Between Shaanxi Meineng and Semiconductor Manufacturing

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Can any of the company-specific risk be diversified away by investing in both Shaanxi Meineng and Semiconductor Manufacturing 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 Shaanxi Meineng and Semiconductor Manufacturing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shaanxi Meineng Clean and Semiconductor Manufacturing Electronics, you can compare the effects of market volatilities on Shaanxi Meineng and Semiconductor Manufacturing 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 Shaanxi Meineng with a short position of Semiconductor Manufacturing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shaanxi Meineng and Semiconductor Manufacturing.

Diversification Opportunities for Shaanxi Meineng and Semiconductor Manufacturing

-0.25
  Correlation Coefficient

Very good diversification

The 3 months correlation between Shaanxi and Semiconductor is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Shaanxi Meineng Clean and Semiconductor Manufacturing El in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Semiconductor Manufacturing and Shaanxi Meineng 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 Shaanxi Meineng Clean are associated (or correlated) with Semiconductor Manufacturing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Semiconductor Manufacturing has no effect on the direction of Shaanxi Meineng i.e., Shaanxi Meineng and Semiconductor Manufacturing go up and down completely randomly.

Pair Corralation between Shaanxi Meineng and Semiconductor Manufacturing

Assuming the 90 days trading horizon Shaanxi Meineng Clean is expected to under-perform the Semiconductor Manufacturing. But the stock apears to be less risky and, when comparing its historical volatility, Shaanxi Meineng Clean is 1.42 times less risky than Semiconductor Manufacturing. The stock trades about -0.1 of its potential returns per unit of risk. The Semiconductor Manufacturing Electronics is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  562.00  in Semiconductor Manufacturing Electronics on September 12, 2025 and sell it today you would earn a total of  95.00  from holding Semiconductor Manufacturing Electronics or generate 16.9% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Shaanxi Meineng Clean  vs.  Semiconductor Manufacturing El

 Performance 
       Timeline  
Shaanxi Meineng Clean 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Shaanxi Meineng Clean has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long term up-swing for the company investors.
Semiconductor Manufacturing 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Semiconductor Manufacturing Electronics are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Semiconductor Manufacturing sustained solid returns over the last few months and may actually be approaching a breakup point.

Shaanxi Meineng and Semiconductor Manufacturing Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Shaanxi Meineng and Semiconductor Manufacturing

The main advantage of trading using opposite Shaanxi Meineng and Semiconductor Manufacturing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shaanxi Meineng position performs unexpectedly, Semiconductor Manufacturing 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 Semiconductor Manufacturing will offset losses from the drop in Semiconductor Manufacturing's long position.
The idea behind Shaanxi Meineng Clean and Semiconductor Manufacturing Electronics 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.
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.

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