Correlation Between Jinhe Biotechnology and Thinkon Semiconductor
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By analyzing existing cross correlation between Jinhe Biotechnology Co and Thinkon Semiconductor Jinzhou, you can compare the effects of market volatilities on Jinhe Biotechnology 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 Jinhe Biotechnology with a short position of Thinkon Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhe Biotechnology and Thinkon Semiconductor.
Diversification Opportunities for Jinhe Biotechnology and Thinkon Semiconductor
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jinhe and Thinkon is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Jinhe Biotechnology 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 Jinhe Biotechnology 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 Jinhe Biotechnology 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 Jinhe Biotechnology i.e., Jinhe Biotechnology and Thinkon Semiconductor go up and down completely randomly.
Pair Corralation between Jinhe Biotechnology and Thinkon Semiconductor
Assuming the 90 days trading horizon Jinhe Biotechnology Co is expected to generate 1.14 times more return on investment than Thinkon Semiconductor. However, Jinhe Biotechnology is 1.14 times more volatile than Thinkon Semiconductor Jinzhou. It trades about -0.07 of its potential returns per unit of risk. Thinkon Semiconductor Jinzhou is currently generating about -0.09 per unit of risk. If you would invest 486.00 in Jinhe Biotechnology Co on October 20, 2024 and sell it today you would lose (27.00) from holding Jinhe Biotechnology Co or give up 5.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinhe Biotechnology Co vs. Thinkon Semiconductor Jinzhou
Performance |
| Timeline |
| Jinhe Biotechnology |
| Thinkon Semiconductor |
Jinhe Biotechnology and Thinkon Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhe Biotechnology and Thinkon Semiconductor
The main advantage of trading using opposite Jinhe Biotechnology and Thinkon Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhe Biotechnology 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.| Jinhe Biotechnology vs. Shenzhen Clou Electronics | Jinhe Biotechnology vs. Dongfeng Automobile Co | Jinhe Biotechnology vs. Ningbo Fangzheng Automobile | Jinhe Biotechnology vs. Dongguan Tarry Electronics |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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