Correlation Between Guangdong TianYiMa and Puya Semiconductor
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangdong TianYiMa Information and Puya Semiconductor Shanghai, you can compare the effects of market volatilities on Guangdong TianYiMa and Puya 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 Guangdong TianYiMa with a short position of Puya Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong TianYiMa and Puya Semiconductor.
Diversification Opportunities for Guangdong TianYiMa and Puya Semiconductor
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Guangdong and Puya is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong TianYiMa Information and Puya Semiconductor Shanghai in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Puya Semiconductor and Guangdong TianYiMa 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 Guangdong TianYiMa Information are associated (or correlated) with Puya Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Puya Semiconductor has no effect on the direction of Guangdong TianYiMa i.e., Guangdong TianYiMa and Puya Semiconductor go up and down completely randomly.
Pair Corralation between Guangdong TianYiMa and Puya Semiconductor
Assuming the 90 days trading horizon Guangdong TianYiMa is expected to generate 1.24 times less return on investment than Puya Semiconductor. In addition to that, Guangdong TianYiMa is 1.03 times more volatile than Puya Semiconductor Shanghai. It trades about 0.02 of its total potential returns per unit of risk. Puya Semiconductor Shanghai is currently generating about 0.02 per unit of volatility. If you would invest 11,008 in Puya Semiconductor Shanghai on November 7, 2024 and sell it today you would lose (179.00) from holding Puya Semiconductor Shanghai or give up 1.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong TianYiMa Information vs. Puya Semiconductor Shanghai
Performance |
| Timeline |
| Guangdong TianYiMa |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Puya Semiconductor |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Guangdong TianYiMa and Puya Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong TianYiMa and Puya Semiconductor
The main advantage of trading using opposite Guangdong TianYiMa and Puya Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong TianYiMa position performs unexpectedly, Puya 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 Puya Semiconductor will offset losses from the drop in Puya Semiconductor's long position.The idea behind Guangdong TianYiMa Information and Puya Semiconductor Shanghai pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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