Correlation Between Hunan Investment and Puya Semiconductor
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By analyzing existing cross correlation between Hunan Investment Group and Puya Semiconductor Shanghai, you can compare the effects of market volatilities on Hunan Investment and Puya 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 Hunan Investment with a short position of Puya Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Investment and Puya Semiconductor.
Diversification Opportunities for Hunan Investment and Puya Semiconductor
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hunan and Puya is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Investment Group and Puya Semiconductor Shanghai in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Puya Semiconductor and Hunan Investment 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 Hunan Investment Group are associated (or correlated) with Puya Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Puya Semiconductor has no effect on the direction of Hunan Investment i.e., Hunan Investment and Puya Semiconductor go up and down completely randomly.
Pair Corralation between Hunan Investment and Puya Semiconductor
Assuming the 90 days trading horizon Hunan Investment Group is expected to under-perform the Puya Semiconductor. But the stock apears to be less risky and, when comparing its historical volatility, Hunan Investment Group is 2.69 times less risky than Puya Semiconductor. The stock trades about -0.08 of its potential returns per unit of risk. The Puya Semiconductor Shanghai is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 8,883 in Puya Semiconductor Shanghai on October 30, 2024 and sell it today you would earn a total of 1,946 from holding Puya Semiconductor Shanghai or generate 21.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Investment Group vs. Puya Semiconductor Shanghai
Performance |
| Timeline |
| Hunan Investment |
| Puya Semiconductor |
Hunan Investment and Puya Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Investment and Puya Semiconductor
The main advantage of trading using opposite Hunan Investment and Puya Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Investment position performs unexpectedly, Puya 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 Puya Semiconductor will offset losses from the drop in Puya Semiconductor's long position.| Hunan Investment vs. Zhongshan Public Utilities | Hunan Investment vs. Xiangyang Automobile Bearing | Hunan Investment vs. Advanced Technology Materials | Hunan Investment vs. Nanya New Material |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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