Correlation Between Gem Year and Thinkon Semiconductor
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By analyzing existing cross correlation between Gem Year Industrial Co and Thinkon Semiconductor Jinzhou, you can compare the effects of market volatilities on Gem Year 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 Gem Year with a short position of Thinkon Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gem Year and Thinkon Semiconductor.
Diversification Opportunities for Gem Year and Thinkon Semiconductor
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gem and Thinkon is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Gem Year Industrial Co and Thinkon Semiconductor Jinzhou in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thinkon Semiconductor and Gem Year 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 Gem Year Industrial Co 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 Gem Year i.e., Gem Year and Thinkon Semiconductor go up and down completely randomly.
Pair Corralation between Gem Year and Thinkon Semiconductor
Assuming the 90 days trading horizon Gem Year Industrial Co is expected to generate 0.56 times more return on investment than Thinkon Semiconductor. However, Gem Year Industrial Co is 1.77 times less risky than Thinkon Semiconductor. It trades about 0.0 of its potential returns per unit of risk. Thinkon Semiconductor Jinzhou is currently generating about -0.02 per unit of risk. If you would invest 468.00 in Gem Year Industrial Co on October 12, 2024 and sell it today you would lose (41.00) from holding Gem Year Industrial Co or give up 8.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gem Year Industrial Co vs. Thinkon Semiconductor Jinzhou
Performance |
| Timeline |
| Gem Year Industrial |
| Thinkon Semiconductor |
Gem Year and Thinkon Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gem Year and Thinkon Semiconductor
The main advantage of trading using opposite Gem Year and Thinkon Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gem Year 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.| Gem Year vs. Shaanxi Meineng Clean | Gem Year vs. Duzhe Publishing Media | Gem Year vs. Tinavi Medical Technologies | Gem Year vs. Shandong Publishing Media |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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