Correlation Between Qingdao Choho and Thinkon Semiconductor
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By analyzing existing cross correlation between Qingdao Choho Industrial and Thinkon Semiconductor Jinzhou, you can compare the effects of market volatilities on Qingdao Choho 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 Qingdao Choho with a short position of Thinkon Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Choho and Thinkon Semiconductor.
Diversification Opportunities for Qingdao Choho and Thinkon Semiconductor
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Qingdao and Thinkon is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Choho Industrial and Thinkon Semiconductor Jinzhou in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thinkon Semiconductor and Qingdao Choho 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 Qingdao Choho Industrial 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 Qingdao Choho i.e., Qingdao Choho and Thinkon Semiconductor go up and down completely randomly.
Pair Corralation between Qingdao Choho and Thinkon Semiconductor
Assuming the 90 days trading horizon Qingdao Choho Industrial is expected to under-perform the Thinkon Semiconductor. But the stock apears to be less risky and, when comparing its historical volatility, Qingdao Choho Industrial is 1.54 times less risky than Thinkon Semiconductor. The stock trades about -0.04 of its potential returns per unit of risk. The Thinkon Semiconductor Jinzhou is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 4,501 in Thinkon Semiconductor Jinzhou on October 12, 2024 and sell it today you would lose (2,300) from holding Thinkon Semiconductor Jinzhou or give up 51.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Qingdao Choho Industrial vs. Thinkon Semiconductor Jinzhou
Performance |
| Timeline |
| Qingdao Choho Industrial |
| Thinkon Semiconductor |
Qingdao Choho and Thinkon Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Choho and Thinkon Semiconductor
The main advantage of trading using opposite Qingdao Choho and Thinkon Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Choho 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.| Qingdao Choho vs. Kingsignal Technology Co | Qingdao Choho vs. Keeson Technology Corp | Qingdao Choho vs. Wuxi Chemical Equipment | Qingdao Choho vs. Tianshui Huatian 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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