Correlation Between HanS Laser and Thinkon Semiconductor
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By analyzing existing cross correlation between HanS Laser Tech and Thinkon Semiconductor Jinzhou, you can compare the effects of market volatilities on HanS Laser 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 HanS Laser with a short position of Thinkon Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of HanS Laser and Thinkon Semiconductor.
Diversification Opportunities for HanS Laser and Thinkon Semiconductor
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between HanS and Thinkon is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding HanS Laser Tech and Thinkon Semiconductor Jinzhou in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thinkon Semiconductor and HanS Laser 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 HanS Laser Tech 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 HanS Laser i.e., HanS Laser and Thinkon Semiconductor go up and down completely randomly.
Pair Corralation between HanS Laser and Thinkon Semiconductor
Assuming the 90 days trading horizon HanS Laser Tech is expected to generate 0.81 times more return on investment than Thinkon Semiconductor. However, HanS Laser Tech is 1.24 times less risky than Thinkon Semiconductor. It trades about -0.03 of its potential returns per unit of risk. Thinkon Semiconductor Jinzhou is currently generating about -0.11 per unit of risk. If you would invest 2,634 in HanS Laser Tech on October 30, 2024 and sell it today you would lose (71.00) from holding HanS Laser Tech or give up 2.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
HanS Laser Tech vs. Thinkon Semiconductor Jinzhou
Performance |
| Timeline |
| HanS Laser Tech |
| Thinkon Semiconductor |
HanS Laser and Thinkon Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HanS Laser and Thinkon Semiconductor
The main advantage of trading using opposite HanS Laser and Thinkon Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HanS Laser 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.| HanS Laser vs. Guangdong Jingyi Metal | HanS Laser vs. North Copper Shanxi | HanS Laser vs. Uroica Mining Safety | HanS Laser vs. Northking Information Technology |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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