Correlation Between STMicroelectronics and CCSC Technology
Can any of the company-specific risk be diversified away by investing in both STMicroelectronics and CCSC Technology 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 STMicroelectronics and CCSC Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between STMicroelectronics NV ADR and CCSC Technology International, you can compare the effects of market volatilities on STMicroelectronics and CCSC Technology 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 STMicroelectronics with a short position of CCSC Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of STMicroelectronics and CCSC Technology.
Diversification Opportunities for STMicroelectronics and CCSC Technology
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between STMicroelectronics and CCSC is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding STMicroelectronics NV ADR and CCSC Technology International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CCSC Technology Inte and STMicroelectronics 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 STMicroelectronics NV ADR are associated (or correlated) with CCSC Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CCSC Technology Inte has no effect on the direction of STMicroelectronics i.e., STMicroelectronics and CCSC Technology go up and down completely randomly.
Pair Corralation between STMicroelectronics and CCSC Technology
Considering the 90-day investment horizon STMicroelectronics NV ADR is expected to under-perform the CCSC Technology. In addition to that, STMicroelectronics is 1.13 times more volatile than CCSC Technology International. It trades about -0.06 of its total potential returns per unit of risk. CCSC Technology International is currently generating about 0.01 per unit of volatility. If you would invest 107.00 in CCSC Technology International on May 21, 2025 and sell it today you would earn a total of 0.00 from holding CCSC Technology International or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
STMicroelectronics NV ADR vs. CCSC Technology International
Performance |
| Timeline |
| STMicroelectronics NV ADR |
| CCSC Technology Inte |
STMicroelectronics and CCSC Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STMicroelectronics and CCSC Technology
The main advantage of trading using opposite STMicroelectronics and CCSC Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STMicroelectronics position performs unexpectedly, CCSC Technology 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 CCSC Technology will offset losses from the drop in CCSC Technology's long position.| STMicroelectronics vs. NXP Semiconductors NV | STMicroelectronics vs. Analog Devices | STMicroelectronics vs. ON Semiconductor | STMicroelectronics vs. Lattice Semiconductor |
| CCSC Technology vs. Hudson Technologies | CCSC Technology vs. Barrick Mining | CCSC Technology vs. Codexis | CCSC Technology vs. Park Electrochemical |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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