Correlation Between Wuhan Yangtze and Thinkon Semiconductor
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By analyzing existing cross correlation between Wuhan Yangtze Communication and Thinkon Semiconductor Jinzhou, you can compare the effects of market volatilities on Wuhan Yangtze 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 Wuhan Yangtze with a short position of Thinkon Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Yangtze and Thinkon Semiconductor.
Diversification Opportunities for Wuhan Yangtze and Thinkon Semiconductor
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Wuhan and Thinkon is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Yangtze Communication and Thinkon Semiconductor Jinzhou in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thinkon Semiconductor and Wuhan Yangtze 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 Wuhan Yangtze Communication 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 Wuhan Yangtze i.e., Wuhan Yangtze and Thinkon Semiconductor go up and down completely randomly.
Pair Corralation between Wuhan Yangtze and Thinkon Semiconductor
Assuming the 90 days trading horizon Wuhan Yangtze Communication is expected to under-perform the Thinkon Semiconductor. In addition to that, Wuhan Yangtze is 1.2 times more volatile than Thinkon Semiconductor Jinzhou. It trades about -0.36 of its total potential returns per unit of risk. Thinkon Semiconductor Jinzhou is currently generating about -0.25 per unit of volatility. If you would invest 2,506 in Thinkon Semiconductor Jinzhou on October 16, 2024 and sell it today you would lose (327.00) from holding Thinkon Semiconductor Jinzhou or give up 13.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Yangtze Communication vs. Thinkon Semiconductor Jinzhou
Performance |
| Timeline |
| Wuhan Yangtze Commun |
| Thinkon Semiconductor |
Wuhan Yangtze and Thinkon Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Yangtze and Thinkon Semiconductor
The main advantage of trading using opposite Wuhan Yangtze and Thinkon Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Yangtze 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.| Wuhan Yangtze vs. Pengxin International Mining | Wuhan Yangtze vs. Chenzhou Jingui Silver | Wuhan Yangtze vs. Jinling Hotel Corp | Wuhan Yangtze vs. Hainan Mining Co |
| Thinkon Semiconductor vs. Wonders Information | Thinkon Semiconductor vs. Tianjin Silvery Dragon | Thinkon Semiconductor vs. East Money Information | Thinkon Semiconductor vs. Jinxiandai Information Industry |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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