Correlation Between CITIC Guoan and Thinkon Semiconductor
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By analyzing existing cross correlation between CITIC Guoan Information and Thinkon Semiconductor Jinzhou, you can compare the effects of market volatilities on CITIC Guoan 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 CITIC Guoan with a short position of Thinkon Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Guoan and Thinkon Semiconductor.
Diversification Opportunities for CITIC Guoan and Thinkon Semiconductor
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between CITIC and Thinkon is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Guoan Information and Thinkon Semiconductor Jinzhou in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thinkon Semiconductor and CITIC Guoan 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 CITIC Guoan Information 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 CITIC Guoan i.e., CITIC Guoan and Thinkon Semiconductor go up and down completely randomly.
Pair Corralation between CITIC Guoan and Thinkon Semiconductor
Assuming the 90 days trading horizon CITIC Guoan Information is expected to under-perform the Thinkon Semiconductor. But the stock apears to be less risky and, when comparing its historical volatility, CITIC Guoan Information is 1.05 times less risky than Thinkon Semiconductor. The stock trades about -0.51 of its potential returns per unit of risk. The Thinkon Semiconductor Jinzhou is currently generating about -0.32 of returns per unit of risk over similar time horizon. If you would invest 2,628 in Thinkon Semiconductor Jinzhou on October 12, 2024 and sell it today you would lose (427.00) from holding Thinkon Semiconductor Jinzhou or give up 16.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CITIC Guoan Information vs. Thinkon Semiconductor Jinzhou
Performance |
| Timeline |
| CITIC Guoan Information |
| Thinkon Semiconductor |
CITIC Guoan and Thinkon Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Guoan and Thinkon Semiconductor
The main advantage of trading using opposite CITIC Guoan and Thinkon Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Guoan 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.| CITIC Guoan vs. Tongyu Communication | CITIC Guoan vs. Sunwave Communications Co | CITIC Guoan vs. Jiangxi Hengda Hi Tech | CITIC Guoan vs. Shanghai Shibei Hi Tech |
| Thinkon Semiconductor vs. CITIC Guoan Information | Thinkon Semiconductor vs. ButOne Information Corp | Thinkon Semiconductor vs. Shenzhen SDG Information | Thinkon Semiconductor vs. Zhongfu Information |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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