Correlation Between Guocheng Mining and Thinkon Semiconductor
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By analyzing existing cross correlation between Guocheng Mining Co and Thinkon Semiconductor Jinzhou, you can compare the effects of market volatilities on Guocheng Mining and Thinkon 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 Guocheng Mining with a short position of Thinkon Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guocheng Mining and Thinkon Semiconductor.
Diversification Opportunities for Guocheng Mining and Thinkon Semiconductor
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guocheng and Thinkon is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Guocheng Mining Co and Thinkon Semiconductor Jinzhou in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thinkon Semiconductor and Guocheng Mining 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 Guocheng Mining Co are associated (or correlated) with Thinkon Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thinkon Semiconductor has no effect on the direction of Guocheng Mining i.e., Guocheng Mining and Thinkon Semiconductor go up and down completely randomly.
Pair Corralation between Guocheng Mining and Thinkon Semiconductor
Assuming the 90 days trading horizon Guocheng Mining is expected to generate 1.0 times less return on investment than Thinkon Semiconductor. But when comparing it to its historical volatility, Guocheng Mining Co is 1.24 times less risky than Thinkon Semiconductor. It trades about 0.07 of its potential returns per unit of risk. Thinkon Semiconductor Jinzhou is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,911 in Thinkon Semiconductor Jinzhou on October 18, 2024 and sell it today you would earn a total of 357.00 from holding Thinkon Semiconductor Jinzhou or generate 18.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guocheng Mining Co vs. Thinkon Semiconductor Jinzhou
Performance |
| Timeline |
| Guocheng Mining |
| Thinkon Semiconductor |
Guocheng Mining and Thinkon Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guocheng Mining and Thinkon Semiconductor
The main advantage of trading using opposite Guocheng Mining and Thinkon Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guocheng Mining position performs unexpectedly, Thinkon 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 Thinkon Semiconductor will offset losses from the drop in Thinkon Semiconductor's long position.| Guocheng Mining vs. Shanghai Newtouch Software | Guocheng Mining vs. Tongyu Communication | Guocheng Mining vs. Fibocom Wireless | Guocheng Mining vs. Songz Automobile Air |
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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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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