Correlation Between CHINA EDUCATION and Semiconductor Manufacturing

Can any of the company-specific risk be diversified away by investing in both CHINA EDUCATION 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 CHINA EDUCATION and Semiconductor Manufacturing into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CHINA EDUCATION GROUP and Semiconductor Manufacturing International, you can compare the effects of market volatilities on CHINA EDUCATION 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 CHINA EDUCATION with a short position of Semiconductor Manufacturing. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHINA EDUCATION and Semiconductor Manufacturing.

Diversification Opportunities for CHINA EDUCATION and Semiconductor Manufacturing

0.0

Correlation Coefficient

CHINA EDUCATION  Semiconductor Manufacturing

Pay attention - limited upside

The 3 months correlation between CHINA and Semiconductor is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CHINA EDUCATION GROUP and Semiconductor Manufacturing In in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Semiconductor Manufacturing and CHINA EDUCATION 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 EDUCATION GROUP 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 CHINA EDUCATION i.e., CHINA EDUCATION and Semiconductor Manufacturing go up and down completely randomly.

Pair Corralation between CHINA EDUCATION and Semiconductor Manufacturing

If you would invest  25.00  in CHINA EDUCATION GROUP on April 24, 2025 and sell it today you would earn a total of  7.00  from holding CHINA EDUCATION GROUP or generate 28.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

CHINA EDUCATION GROUP  vs.  Semiconductor Manufacturing In

CHINA EDUCATION GROUP

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in CHINA EDUCATION GROUP are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, CHINA EDUCATION reported solid returns over the last few months and may actually be approaching a breakup point.

Semiconductor Manufacturing

Risk-Adjusted Performance

Very Weak

Over the last 90 days Semiconductor Manufacturing International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Semiconductor Manufacturing is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with CHINA EDUCATION and Semiconductor Manufacturing

The main advantage of trading using opposite CHINA EDUCATION and Semiconductor Manufacturing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHINA EDUCATION 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 CHINA EDUCATION GROUP and Semiconductor Manufacturing International 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .