Correlation Between Chengdu Xingrong and Puya Semiconductor
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By analyzing existing cross correlation between Chengdu Xingrong Investment and Puya Semiconductor Shanghai, you can compare the effects of market volatilities on Chengdu Xingrong 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 Chengdu Xingrong with a short position of Puya Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Xingrong and Puya Semiconductor.
Diversification Opportunities for Chengdu Xingrong and Puya Semiconductor
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Chengdu and Puya is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Xingrong Investment and Puya Semiconductor Shanghai in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Puya Semiconductor and Chengdu Xingrong 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 Chengdu Xingrong Investment 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 Chengdu Xingrong i.e., Chengdu Xingrong and Puya Semiconductor go up and down completely randomly.
Pair Corralation between Chengdu Xingrong and Puya Semiconductor
Assuming the 90 days trading horizon Chengdu Xingrong is expected to generate 6.55 times less return on investment than Puya Semiconductor. But when comparing it to its historical volatility, Chengdu Xingrong Investment is 4.09 times less risky than Puya Semiconductor. It trades about 0.07 of its potential returns per unit of risk. 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 |
Chengdu Xingrong Investment vs. Puya Semiconductor Shanghai
Performance |
| Timeline |
| Chengdu Xingrong Inv |
| Puya Semiconductor |
Chengdu Xingrong and Puya Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Xingrong and Puya Semiconductor
The main advantage of trading using opposite Chengdu Xingrong and Puya Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Xingrong 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.| Chengdu Xingrong vs. Daoming OpticsChemical Co | Chengdu Xingrong vs. Tongling Nonferrous Metals | Chengdu Xingrong vs. Zhejiang Zhengguang Industrial | Chengdu Xingrong vs. Xilong Chemical Co |
| Puya Semiconductor vs. Will Semiconductor Co | Puya Semiconductor vs. Thinkon Semiconductor Jinzhou | Puya Semiconductor vs. Changchun Engley Automobile | Puya Semiconductor vs. Citic Guoan Wine |
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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