Correlation Between Nanjing Putian and Thinkon Semiconductor
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By analyzing existing cross correlation between Nanjing Putian Telecommunications and Thinkon Semiconductor Jinzhou, you can compare the effects of market volatilities on Nanjing Putian 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 Nanjing Putian with a short position of Thinkon Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Putian and Thinkon Semiconductor.
Diversification Opportunities for Nanjing Putian and Thinkon Semiconductor
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nanjing and Thinkon is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Putian Telecommunicati and Thinkon Semiconductor Jinzhou in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thinkon Semiconductor and Nanjing Putian 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 Nanjing Putian Telecommunications 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 Nanjing Putian i.e., Nanjing Putian and Thinkon Semiconductor go up and down completely randomly.
Pair Corralation between Nanjing Putian and Thinkon Semiconductor
Assuming the 90 days trading horizon Nanjing Putian Telecommunications is expected to generate 1.77 times more return on investment than Thinkon Semiconductor. However, Nanjing Putian is 1.77 times more volatile than Thinkon Semiconductor Jinzhou. It trades about 0.06 of its potential returns per unit of risk. Thinkon Semiconductor Jinzhou is currently generating about -0.06 per unit of risk. If you would invest 385.00 in Nanjing Putian Telecommunications on October 28, 2024 and sell it today you would earn a total of 13.00 from holding Nanjing Putian Telecommunications or generate 3.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing Putian Telecommunicati vs. Thinkon Semiconductor Jinzhou
Performance |
| Timeline |
| Nanjing Putian Telec |
| Thinkon Semiconductor |
Nanjing Putian and Thinkon Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Putian and Thinkon Semiconductor
The main advantage of trading using opposite Nanjing Putian and Thinkon Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Putian 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.| Nanjing Putian vs. Bus Online Co | Nanjing Putian vs. Holitech Technology Co | Nanjing Putian vs. Gome Telecom Equipment | Nanjing Putian vs. Cultural Investment Holdings |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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