Correlation Between Wuhan Yangtze and Puya Semiconductor
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By analyzing existing cross correlation between Wuhan Yangtze Communication and Puya Semiconductor Shanghai, you can compare the effects of market volatilities on Wuhan Yangtze 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 Wuhan Yangtze with a short position of Puya Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Yangtze and Puya Semiconductor.
Diversification Opportunities for Wuhan Yangtze and Puya Semiconductor
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Wuhan and Puya is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Yangtze Communication and Puya Semiconductor Shanghai in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Puya 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 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 Wuhan Yangtze i.e., Wuhan Yangtze and Puya Semiconductor go up and down completely randomly.
Pair Corralation between Wuhan Yangtze and Puya Semiconductor
Assuming the 90 days trading horizon Wuhan Yangtze is expected to generate 1.71 times less return on investment than Puya Semiconductor. But when comparing it to its historical volatility, Wuhan Yangtze Communication is 1.57 times less risky than Puya Semiconductor. It trades about 0.17 of its potential returns per unit of risk. Puya Semiconductor Shanghai is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 9,361 in Puya Semiconductor Shanghai on November 5, 2024 and sell it today you would earn a total of 1,468 from holding Puya Semiconductor Shanghai or generate 15.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Yangtze Communication vs. Puya Semiconductor Shanghai
Performance |
| Timeline |
| Wuhan Yangtze Commun |
| Puya Semiconductor |
Wuhan Yangtze and Puya Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Yangtze and Puya Semiconductor
The main advantage of trading using opposite Wuhan Yangtze and Puya Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Yangtze 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.| Wuhan Yangtze vs. Eastern Communications Co | Wuhan Yangtze vs. Jiangsu Jinling Sports | Wuhan Yangtze vs. Everdisplay Optronics Shanghai | Wuhan Yangtze vs. Beijing Bewinner Communications |
| Puya Semiconductor vs. Hainan Mining Co | Puya Semiconductor vs. ROPEOK Technology Group | Puya Semiconductor vs. MayAir Technology Co | Puya Semiconductor vs. Harbin Air Conditioning |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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