Correlation Between Jiangxi Naipu and Thinkon Semiconductor
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By analyzing existing cross correlation between Jiangxi Naipu Mining and Thinkon Semiconductor Jinzhou, you can compare the effects of market volatilities on Jiangxi Naipu 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 Jiangxi Naipu with a short position of Thinkon Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Naipu and Thinkon Semiconductor.
Diversification Opportunities for Jiangxi Naipu and Thinkon Semiconductor
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangxi and Thinkon is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Naipu Mining and Thinkon Semiconductor Jinzhou in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thinkon Semiconductor and Jiangxi Naipu 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 Jiangxi Naipu Mining 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 Jiangxi Naipu i.e., Jiangxi Naipu and Thinkon Semiconductor go up and down completely randomly.
Pair Corralation between Jiangxi Naipu and Thinkon Semiconductor
Assuming the 90 days trading horizon Jiangxi Naipu Mining is expected to generate 0.72 times more return on investment than Thinkon Semiconductor. However, Jiangxi Naipu Mining is 1.38 times less risky than Thinkon Semiconductor. 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 1,526 in Jiangxi Naipu Mining on October 12, 2024 and sell it today you would earn a total of 1,130 from holding Jiangxi Naipu Mining or generate 74.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Naipu Mining vs. Thinkon Semiconductor Jinzhou
Performance |
| Timeline |
| Jiangxi Naipu Mining |
| Thinkon Semiconductor |
Jiangxi Naipu and Thinkon Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Naipu and Thinkon Semiconductor
The main advantage of trading using opposite Jiangxi Naipu and Thinkon Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Naipu 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.| Jiangxi Naipu vs. Gansu Huangtai Wine marketing | Jiangxi Naipu vs. Dawning Information Industry | Jiangxi Naipu vs. Fiberhome Telecommunication Technologies | Jiangxi Naipu vs. Beijing Kingsoft Office |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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