Correlation Between NBTM New and Thinkon Semiconductor
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By analyzing existing cross correlation between NBTM New Materials and Thinkon Semiconductor Jinzhou, you can compare the effects of market volatilities on NBTM 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 NBTM New with a short position of Thinkon Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of NBTM New and Thinkon Semiconductor.
Diversification Opportunities for NBTM New and Thinkon Semiconductor
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between NBTM and Thinkon is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding NBTM New Materials and Thinkon Semiconductor Jinzhou in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thinkon Semiconductor and NBTM 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 NBTM New Materials 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 NBTM New i.e., NBTM New and Thinkon Semiconductor go up and down completely randomly.
Pair Corralation between NBTM New and Thinkon Semiconductor
Assuming the 90 days trading horizon NBTM New Materials is expected to generate 0.88 times more return on investment than Thinkon Semiconductor. However, NBTM New Materials is 1.13 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 -0.11 per unit of risk. If you would invest 1,623 in NBTM New Materials on October 18, 2024 and sell it today you would earn a total of 34.00 from holding NBTM New Materials or generate 2.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NBTM New Materials vs. Thinkon Semiconductor Jinzhou
Performance |
| Timeline |
| NBTM New Materials |
| Thinkon Semiconductor |
NBTM New and Thinkon Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NBTM New and Thinkon Semiconductor
The main advantage of trading using opposite NBTM New and Thinkon Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NBTM 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.| NBTM New vs. Will Semiconductor Co | NBTM New vs. Nexchip Semiconductor Corp | NBTM New vs. Union Semiconductor Co | NBTM New vs. Shanghai V Test Semiconductor |
| Thinkon Semiconductor vs. Shenzhen Noposion Agrochemicals | Thinkon Semiconductor vs. Miracll Chemicals Co | Thinkon Semiconductor vs. Shaanxi Meineng Clean | Thinkon Semiconductor vs. Dymatic Chemicals |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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