Correlation Between Shengtak New and Thinkon Semiconductor
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By analyzing existing cross correlation between Shengtak New Material and Thinkon Semiconductor Jinzhou, you can compare the effects of market volatilities on Shengtak New 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 Shengtak New with a short position of Thinkon Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shengtak New and Thinkon Semiconductor.
Diversification Opportunities for Shengtak New and Thinkon Semiconductor
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shengtak and Thinkon is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Shengtak New Material and Thinkon Semiconductor Jinzhou in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thinkon Semiconductor and Shengtak New 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 Shengtak New Material 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 Shengtak New i.e., Shengtak New and Thinkon Semiconductor go up and down completely randomly.
Pair Corralation between Shengtak New and Thinkon Semiconductor
Assuming the 90 days trading horizon Shengtak New Material is expected to generate 0.96 times more return on investment than Thinkon Semiconductor. However, Shengtak New Material is 1.04 times less risky than Thinkon Semiconductor. It trades about 0.01 of its potential returns per unit of risk. Thinkon Semiconductor Jinzhou is currently generating about 0.0 per unit of risk. If you would invest 3,164 in Shengtak New Material on October 30, 2024 and sell it today you would lose (198.00) from holding Shengtak New Material or give up 6.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shengtak New Material vs. Thinkon Semiconductor Jinzhou
Performance |
| Timeline |
| Shengtak New Material |
| Thinkon Semiconductor |
Shengtak New and Thinkon Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shengtak New and Thinkon Semiconductor
The main advantage of trading using opposite Shengtak New and Thinkon Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shengtak New 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.| Shengtak New vs. Zijin Mining Group | Shengtak New vs. Wanhua Chemical Group | Shengtak New vs. Baoshan Iron Steel | Shengtak New vs. Shandong Gold 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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