Correlation Between Bank of China and Thinkon Semiconductor
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By analyzing existing cross correlation between Bank of China and Thinkon Semiconductor Jinzhou, you can compare the effects of market volatilities on Bank of China 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 Bank of China with a short position of Thinkon Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Thinkon Semiconductor.
Diversification Opportunities for Bank of China and Thinkon Semiconductor
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Thinkon is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Thinkon Semiconductor Jinzhou in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thinkon Semiconductor and Bank of China 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 Bank of China 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 Bank of China i.e., Bank of China and Thinkon Semiconductor go up and down completely randomly.
Pair Corralation between Bank of China and Thinkon Semiconductor
Assuming the 90 days trading horizon Bank of China is expected to generate 0.41 times more return on investment than Thinkon Semiconductor. However, Bank of China is 2.47 times less risky than Thinkon Semiconductor. It trades about 0.15 of its potential returns per unit of risk. Thinkon Semiconductor Jinzhou is currently generating about -0.14 per unit of risk. If you would invest 526.00 in Bank of China on October 17, 2024 and sell it today you would earn a total of 19.00 from holding Bank of China or generate 3.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of China vs. Thinkon Semiconductor Jinzhou
Performance |
| Timeline |
| Bank of China |
| Thinkon Semiconductor |
Bank of China and Thinkon Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Thinkon Semiconductor
The main advantage of trading using opposite Bank of China and Thinkon Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China 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.| Bank of China vs. Ningbo Fangzheng Automobile | Bank of China vs. Anhui Xinhua Media | Bank of China vs. Shuhua Sports Co | Bank of China vs. Heilongjiang Publishing Media |
| 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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