Correlation Between XiaMen HongXin and Thinkon Semiconductor
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By analyzing existing cross correlation between XiaMen HongXin Electron tech and Thinkon Semiconductor Jinzhou, you can compare the effects of market volatilities on XiaMen HongXin 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 XiaMen HongXin with a short position of Thinkon Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of XiaMen HongXin and Thinkon Semiconductor.
Diversification Opportunities for XiaMen HongXin and Thinkon Semiconductor
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between XiaMen and Thinkon is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding XiaMen HongXin Electron 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 XiaMen HongXin 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 XiaMen HongXin Electron 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 XiaMen HongXin i.e., XiaMen HongXin and Thinkon Semiconductor go up and down completely randomly.
Pair Corralation between XiaMen HongXin and Thinkon Semiconductor
Assuming the 90 days trading horizon XiaMen HongXin Electron tech is expected to generate 1.08 times more return on investment than Thinkon Semiconductor. However, XiaMen HongXin is 1.08 times more volatile than Thinkon Semiconductor Jinzhou. It trades about 0.05 of its potential returns per unit of risk. Thinkon Semiconductor Jinzhou is currently generating about -0.02 per unit of risk. If you would invest 1,189 in XiaMen HongXin Electron tech on October 16, 2024 and sell it today you would earn a total of 928.00 from holding XiaMen HongXin Electron tech or generate 78.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
XiaMen HongXin Electron tech vs. Thinkon Semiconductor Jinzhou
Performance |
| Timeline |
| XiaMen HongXin Electron |
| Thinkon Semiconductor |
XiaMen HongXin and Thinkon Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XiaMen HongXin and Thinkon Semiconductor
The main advantage of trading using opposite XiaMen HongXin and Thinkon Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XiaMen HongXin 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.| XiaMen HongXin vs. China Minmetals Rare | XiaMen HongXin vs. Chengtun Mining Group | XiaMen HongXin vs. Jiugui Liquor Co | XiaMen HongXin vs. Xinjiang Baodi Mining |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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