Correlation Between China Shenhua and Thinkon Semiconductor
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By analyzing existing cross correlation between China Shenhua Energy and Thinkon Semiconductor Jinzhou, you can compare the effects of market volatilities on China Shenhua 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 China Shenhua with a short position of Thinkon Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Shenhua and Thinkon Semiconductor.
Diversification Opportunities for China Shenhua and Thinkon Semiconductor
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Thinkon is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding China Shenhua Energy and Thinkon Semiconductor Jinzhou in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thinkon Semiconductor and China Shenhua 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 China Shenhua Energy 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 China Shenhua i.e., China Shenhua and Thinkon Semiconductor go up and down completely randomly.
Pair Corralation between China Shenhua and Thinkon Semiconductor
Assuming the 90 days trading horizon China Shenhua Energy is expected to generate 0.39 times more return on investment than Thinkon Semiconductor. However, China Shenhua Energy is 2.56 times less risky than Thinkon Semiconductor. It trades about 0.07 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 2,576 in China Shenhua Energy on October 12, 2024 and sell it today you would earn a total of 1,381 from holding China Shenhua Energy or generate 53.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
China Shenhua Energy vs. Thinkon Semiconductor Jinzhou
Performance |
| Timeline |
| China Shenhua Energy |
| Thinkon Semiconductor |
China Shenhua and Thinkon Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Shenhua and Thinkon Semiconductor
The main advantage of trading using opposite China Shenhua and Thinkon Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Shenhua 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.| China Shenhua vs. Sunwave Communications Co | China Shenhua vs. Guangdong Shenglu Telecommunication | China Shenhua vs. Runjian Communication Co | China Shenhua vs. Tieling Newcity 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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