Correlation Between Shenzhen Hifuture and Thinkon Semiconductor
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By analyzing existing cross correlation between Shenzhen Hifuture Electric and Thinkon Semiconductor Jinzhou, you can compare the effects of market volatilities on Shenzhen Hifuture 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 Shenzhen Hifuture with a short position of Thinkon Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Hifuture and Thinkon Semiconductor.
Diversification Opportunities for Shenzhen Hifuture and Thinkon Semiconductor
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shenzhen and Thinkon is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Hifuture Electric and Thinkon Semiconductor Jinzhou in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thinkon Semiconductor and Shenzhen Hifuture 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 Shenzhen Hifuture Electric 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 Shenzhen Hifuture i.e., Shenzhen Hifuture and Thinkon Semiconductor go up and down completely randomly.
Pair Corralation between Shenzhen Hifuture and Thinkon Semiconductor
Assuming the 90 days trading horizon Shenzhen Hifuture Electric is expected to under-perform the Thinkon Semiconductor. In addition to that, Shenzhen Hifuture is 1.26 times more volatile than Thinkon Semiconductor Jinzhou. It trades about -0.32 of its total potential returns per unit of risk. Thinkon Semiconductor Jinzhou is currently generating about -0.06 per unit of volatility. If you would invest 2,467 in Thinkon Semiconductor Jinzhou on October 28, 2024 and sell it today you would lose (89.00) from holding Thinkon Semiconductor Jinzhou or give up 3.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Hifuture Electric vs. Thinkon Semiconductor Jinzhou
Performance |
| Timeline |
| Shenzhen Hifuture |
| Thinkon Semiconductor |
Shenzhen Hifuture and Thinkon Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Hifuture and Thinkon Semiconductor
The main advantage of trading using opposite Shenzhen Hifuture and Thinkon Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Hifuture 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.| Shenzhen Hifuture vs. Lotus Health Group | Shenzhen Hifuture vs. Anhui Huaren Health | Shenzhen Hifuture vs. PKU HealthCare Corp | Shenzhen Hifuture vs. Shandong Sinoglory Health |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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